Notice Period

Notice Period

The time during which the buyer of a futures contract can be called upon to accept delivery. Typically, the 3 to 6 weeks preceding the expiration of the contract.

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Notice Period

1. In futures trading, the period of time before the expiration of the future contract during which the buyer may be called upon to accept receipt of the underlying. The specific length of the notice period varies and is set in the contract, but is generally three to six weeks prior to the contract's expiration. See also: Settlement date.

2. A period of time before which an employee, by contract or by courtesy, must inform his/her employer of his/her intention to leave the current job. If no specific notice period is set in a contract, then it is usually assumed to be two weeks. However, notice periods may be set to as long as six months or one year.