Home > Glossary > Expiration Date

Meaning / Definition of

Expiration Date

Categories: Options, Investing and Trading, Stocks,

The expiration date is the day on which an options contract expires and becomes worthless. listed options always expire on the Saturday following the third Friday of their expiration month. For example, if you hold an American-style September equity option, you can exercise it any time before the end of trading on the third Friday in September, or whatever cutoff time your brokerage firm sets. In contrast, European-style options can be exercised only at expiration, usually on Friday.Under specific circumstances, listed options will be exercised automatically at expiration unless the owner gives instructions not to exercise them. Unlike the standard term of listed option, the expiration date of an over-the-counter option is negotiated at the time of the trade.

Featured term of the day

Definition / Meaning of

Spousal Coverage Extension

Categories: Insurance,

removed

Most popular terms

1. Corridor Self-insured Retention
2. Section 8 Declaration Of Excusable Nonuse
3. Employee Retirement Income Security Act Stock Drop Litigation
4. Collateralized Mortgage Obligation (CMO)
5. Motor Vehicle
6. Inflation-protected Security (TIPS)
7. Statute Of Limitations
8. IRA Rollover
9. Fast Market
10. Employer Sponsored Retirement Plan

Search a term

Keyword:

Browse by alphabet

ABCDEFG
HIJKLMN
OPQRSTU
VWXYZ#

Browse by category

Accounting
Banking
Bankruptcy Assistance
Bonds and Treasuries
Brokerages
Business and Management
Compliance and Governance
Credit and Debt
E-commerce
Economics
Estate Planning
Forex
Fraud
Fundamental Analysis
Futures
Global
Insurance
International Trade
Investing and Trading
Ipos
Legal
Loan and Mortgage
Mergers and Acquisitions
Mutual Funds
Operation and Production
Options
Patent
Personnel Management
Real Estate
Retirement and Pension
Statistics and Risk Management
Stocks
Strategies
Tax
Technical Analysis
Venture Capital