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 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.
