Futures expiration — the process of completing a fixed-term contract on the stock exchange.
The expiry date is the last day when the asset is allowed to trade. It is specified in the futures specification. It also fixes other parameters of the asset, and the rules for trading it. Basically, the futures expiration date comes on the 3rd Friday of the contract month. However, some assets have it on a different day, which is fixed in their documentation. It should be noted that only 1% of futures end in real delivery, there are traders who hold open positions on these securities, waiting for their expiry.
Most traders do not expect to profit from the difference in the value of fixed-term contracts, and do not make physical deliveries or cash settlements. Until the futures are no longer traded, there are different ways to act. A trader can liquidate his position on the futures contract, or carry it over to the next month.
Most futures have an expiration date of 3 months. Thus, they can have four expirations per year. During the circulation of the asset, its price is largely the same as the price of the underlying commodity. As the expiry date approaches, the situation changes. The majority of futures holders are mainly aimed at speculating with them, so they try to close the position on them without waiting for the contract execution. Global Alliance Expiration Calendar simplifies the trader’s work. You will always be aware of the approaching date of termination of a futures contract, and you can not only avoid losses, but also increase your profits.