What Is the Last Trading Day?

The last trading day is the last day that a particular contract can be traded. After the last trading day, the contract expires and is no longer valid. The last trading day is usually two days before the expiration date, but this can vary depending on the contract. Why do markets expire on Thursdays? Markets typically expire on Thursdays because that is when the weekly jobs report is released. The jobs report is a key piece of economic data that can have a big impact on the markets. By expiring on Thursdays, traders have the opportunity to react to the jobs report before the markets close for the week.

What time do crude oil options expire? The expiration date for all NYMEX-traded crude oil options is the third Friday of the expiration month. If the third Friday falls on an exchange holiday, the expiration date will be on the Thursday immediately preceding the third Friday.

The last trading day for crude oil options is the day before expiration.

Do futures expire?

Futures contracts do indeed have an expiration date. The date on which a particular contract expires is determined by the exchange on which it is traded. For example, the expiration date for futures contracts traded on the Chicago Mercantile Exchange (CME) is the third Friday of the contract month. So, for example, the expiration date for a December contract would be the third Friday in December.

When a contract expires, the holder must either take delivery of the underlying asset (if they are the holder of a "physical" contract) or they must close out their position by entering into an offsetting transaction (if they are the holder of a "cash-settled" contract). If the holder does not do either of these things, then their position will be "broken" and they will be subject to a number of penalties.

It is important to note that, even though a contract may expire, the underlying asset does not. So, for example, if you are holding a contract for December delivery of crude oil, and the contract expires on the third Friday in December, you will still have to take delivery of the crude oil on that date. The only difference is that, once the contract expires, you will no longer have a contract and will not be able to trade it.

What happens on futures expiry day?

When a futures contract expires, the holder of the contract must either take delivery of the underlying asset, if they are the holder of a long position, or must deliver the underlying asset if they are the holder of a short position.

If the holder of a long position does not have the underlying asset, they will have to purchase it in the open market in order to deliver it. If the holder of a short position does not have the underlying asset, they will have to borrow it in order to deliver it.

Do options expire at the end of the day?

Yes, options do expire at the end of the day. Each options contract has a set expiration date, and on that date, the contract expires and is no longer valid. At that point, the option holder will no longer have the right to buy or sell the underlying asset.