Definition

Futures Expiration

Meaning ⎊ The final date of a futures contract when it is settled and its price converges with the spot price.
Greeks.liveMarch 12, 2026

Futures Expiration

Futures expiration is the specific date and time when a futures contract ceases to trade and is settled, either through physical delivery of the underlying asset or a cash settlement based on the final index price. At this point, the futures price must equal the spot price, as the contract no longer has a future duration.

The period leading up to expiration often sees increased volatility and trading volume as participants roll their positions into future contracts or close them out. Understanding the expiration cycle is crucial for traders using basis trading or other strategies that depend on price convergence.

It also impacts the overall market liquidity and can lead to significant price movements as large positions are adjusted. Managing expiration risk involves planning for these transitions and ensuring that positions are correctly aligned with the desired time horizon.

Perpetual Futures Basis
Basis Spread
Contract Duration
Expiration Decay
Contango and Backwardation
Cost of Carry Model
American Style Options
Perpetual Futures Contract

Glossary

Contract Settlement

Procedure ⎊ Contract settlement refers to the formal process of concluding a derivatives agreement upon its expiration date.

Derivative Markets

Definition ⎊ Derivative markets facilitate the trading of financial instruments whose value is derived from an underlying asset, such as a cryptocurrency or index.

Cash Settlement Process

Process ⎊ The cash settlement process, within cryptocurrency, options trading, and financial derivatives, represents the final step in fulfilling a contractual obligation.

Financial Derivatives

Instrument ⎊ Financial derivatives are contracts whose value is derived from an underlying asset, index, or rate.

Contract Maturity Dates

Settlement ⎊ Contract maturity dates, within cryptocurrency derivatives, delineate the final date on which the underlying asset or its cash equivalent is exchanged between counterparties.

Physical Delivery Options

Mechanism ⎊ Physical delivery options in cryptocurrency derivatives represent a structural bridge between synthetic financial exposure and the underlying digital asset.

Position Rolling

Adjustment ⎊ Position rolling is a tactical adjustment where an existing derivative contract is closed out, and a new contract with a different expiration date or strike price is immediately initiated.

Settlement Price Discovery

Discovery ⎊ Settlement Price Discovery, within cryptocurrency derivatives, represents the process by which a fair and representative price for an underlying asset is determined at the contract’s expiration.

Expiration Mechanics

Settlement ⎊ This refers to the precise procedure governing the final resolution of an option contract at its expiration date, determining the final cash or asset transfer.

Trading Strategies

Strategy ⎊ Trading strategies represent systematic approaches to generating returns or managing risk in financial markets.