Expiry date has a particular significance in relation to IG's platform. Here, we define expiry date in general investing and explain what it means to you when trading with IG.
The point when a trading position automatically closes is known as the expiry date (or expiration date).
Expiry dates are key to futures and options trades, as they all involve predicting the movement of a market within a defined period of time. In the case of futures, profit or loss is decided automatically once the expiry date is reached. Options give the trader the right – but not the obligation – to buy or sell an asset once it reaches a certain price, but only if it reaches that price before the option expires.
Expiry dates can vary from product to product. CFDs for example do not have an expiry, unless they are on futures. Options on the other hand, have a pre-determined expiry.