Investor Glossary-expiration dateInvestor Glossary-expiration dateInvestor Glossary-expiration dateInvestor Glossary-expiration dateInsightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Expiration Date

The HTML to link to this page
 

In derivatives markets, the expiration date is the date that a security with a finite life, such as a futures or option contract, expires. With a futures contract, either cash settlement or physical delivery occurs after the expiration date. With an options contract, if the option is not exercised by the end of the day on the expiration date, the option expires worthless. If more than one type of derivative contract class expires on the same expiration date, then that date is said to be a double witching day, or triple witching day. For instance index options, stock options, and index futures all have an expiration date of the third Friday in March, June, September, and December. The concurrent expiration date makes those four days triple witching days. The term expiration date is very basic and used in many contexts. For example, an insurance policy may have a specific expiration date upon which the policy may terminate.



Rate this expiration date definition...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: quality assurance, minority interest, command economy, Zero Cost Collar, APR, annual return, Key Rate Duration, average price per share, ex-dividend date, phantom income, risk management, in escrow, EBITDA, diluted share, option premium, cancelled check, covered put, required rate of return, labor relations, VIX, balance sheet, current ratio, LIBOR, real GDP, 401a, debt service coverage, 1031 exchange, margin rate, 144a, liquidity ratio, class C shares, wholly-owned subsidiary, deferred tax, irrevocable trust, 1035 exchange, stock market close, deferred revenue, implied volatility, reverse mortgage, retained earnings, dividends payable, inflation, stock split, open position, limit order, ex-dividend, FICO score, FTSE, per diem


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Investor Glossary | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2016 Investor Glossary - All rights reserved - Terms of Use