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Community User Posted on 03:02pm 14-Nov-2019

What is the meaning of expiry date in derivatives contract?

The expiry date is the day when the buyer and seller of a derivative contract have to honor their obligations/rights as per the contract specifications. Therefore, each derivative contract has a finite life after which the contract expires. For e.g. at the end of September 2019, 1 month Futures on Stock A would have an expiry date in October 2019, which would be the last Thursday of October 2019. This futures contract would cease to exist after 31 October 2019.

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