DayTradingGuide
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I just read the Expiration Cycles article, and I wanted to comment on the expiration dates that are discussed in the article.
As mentioned in the article, the standard expiration date for many futures and options markets is the third Friday of every third month, however, there are many futures and options markets that have different expiration dates, and this was not mentioned in the article.
For example, the currency futures markets expire on the second business day before the third Wednesday of every third month (such as the September 2008 contract of the GBP futures expiring on Monday September 15th). Similarly, the currency options markets expire on the second Friday before the third Wednesday of the contract month (such as the September 2008 contract of the GBP options expiring on Friday September 5th).
Many of the commodity futures and options markets also have different expiration dates, such as the gold futures markets expiring on the third to last business day of every second month (e.g. the August 2008 contract of the gold futures expires on Wednesday August 27th).
The expiration dates for all futures and options markets are listed in their contract specifications. Make sure that you know when your markets are expiring so that you can exit any trades before their contracts expire, otherwise you may have to take delivery of a lot of cows (the live cattle futures expire on the last business day of every second month
).
Adam Milton
As mentioned in the article, the standard expiration date for many futures and options markets is the third Friday of every third month, however, there are many futures and options markets that have different expiration dates, and this was not mentioned in the article.
For example, the currency futures markets expire on the second business day before the third Wednesday of every third month (such as the September 2008 contract of the GBP futures expiring on Monday September 15th). Similarly, the currency options markets expire on the second Friday before the third Wednesday of the contract month (such as the September 2008 contract of the GBP options expiring on Friday September 5th).
Many of the commodity futures and options markets also have different expiration dates, such as the gold futures markets expiring on the third to last business day of every second month (e.g. the August 2008 contract of the gold futures expires on Wednesday August 27th).
The expiration dates for all futures and options markets are listed in their contract specifications. Make sure that you know when your markets are expiring so that you can exit any trades before their contracts expire, otherwise you may have to take delivery of a lot of cows (the live cattle futures expire on the last business day of every second month
).Adam Milton
