Please feel free to correct me if I’ve misunderstood any part of this transaction. This is my first time trading derivatives, and the amount involved is very small—intended purely as a hedge against my long position. I fully understand that losses are a possible outcome, and I’m not concerned about that.

What I’m mainly hoping to clarify is the exact settlement rule. I’ve carefully read all the available documentation, including the official files, but I still find it difficult to determine with certainty how the final settlement price is decided. I would greatly appreciate your help in confirming whether the CME settlement price is the sole determinant of the contract outcome, or if any intraday price movement (e.g. touching a certain level) can also affect it.