Last Trading Day
The final day that a futures or options contract may trade or be closed out before delivery of the underlying asset must occur. Investopedia Says:
If the buying and selling parties do not arrange an alternate agreement, the physical commodity must be delivered from the seller to the buyer. For example, if you were long on a pork belly futures contract and didn't close out the position by the end of the last trading day, you should be prepared to accept delivery of real pork bellies. Related Terms:
Cash Settlement
Current Delivery
Delivery Month
Derivative
Futures
Option
Underlying |