Last trading day


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Last trading day

The final day under an exchange's rules during which trading may take place in a particular futures or options contract. Contracts outstanding at the end of the last trading day must be settled by delivery ofunderlying physical commodities or financial instruments, or by agreement for monetary settlement, depending futures contract specifications.

Last Trading Day

1. In options, the expiration date.

2. In futures, the last day on which a contract may be traded. After the last trading day, whoever holds the contract must either take delivery of the underlying assets or agree to settle in cash.

last trading day

1. The day on which a trader must liquidate a futures position or else be required to receive (if long) or make delivery (if short). Following this day, the particular contract will cease trading.
2. The last day on which a particular option is traded. Currently, this day is the third Friday of the expiration month.

Last trading day.

The last trading day is the final day on which an order to buy or sell an options contract or futures contract can be executed.

In the case of an options contract, for example, the last trading day is usually the Friday before the third Saturday of the month in which the option expires, though a brokerage firm may set an earlier deadline for receiving orders.

If you don't act on an option you own before the final trading day, the option may simply expire, or if it is in-the-money it may be automatically executed on your behalf by your brokerage firm or the Options Clearing Corporation (OCC) unless you request that it not be.

But if a futures contract isn't offset, the contract seller is obligated to deliver the physical commodity or cash settlement to the contract buyer.

References in periodicals archive ?
A flurry of activity was witnessed on the last trading day of the week, with foreign and local participants adjusting their portfolios.
As a result of the announcements, the Index changes will take place after the market closes on April 29, 2016, (the last trading day of April 2016) and be effective on May 2, 2016.
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In a separate statement, the Beirut Stock Exchange said Friday will be the last trading day in 2011.
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That is more than 57% above the price of the stock on July 25, 2006, the last trading day before the company's announcement that it planned to explore strategic options.
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The current offer represents a multiple of 13.4 times normalized EBITDA and a 23% premium over the closing price on July 8, 2005, the last trading day prior to VNU's announcement of its planned merger, since abandoned because of shareholder opposition, with IMS Health.
Under the indenture governing the notes, a holder may convert any of its notes into BEI common stock during any fiscal quarter if the sale price of the common stock for at least 20 consecutive trading days in the 30 trading days ending on the last trading day of the immediately preceding fiscal quarter exceeds 120 percent of the conversion price on that 30th trading day.