Every standard futures contract has an end date. As that date approaches, it helps to know exactly what comes next. Do you get paid out in cash? Do you have to take delivery of a physical asset? This guide walks through the mechanics, the key deadlines and the choices you have when a futures contract expires.
Futures contract expiration is the date when a standard futures contract reaches the end of its trading period. By that point, traders need to close the position, roll it into a later contract or allow it to settle according to the contract’s terms.
Here's the part many first-time traders miss: If you haven’t closed or ‘rolled’ a position before expiration, the contract expires and the position proceeds to settlement according to its contract terms. There's no opt-out at the last minute – the conditions of the contract take over.
So, when do futures contracts expire? Expiry dates for fixed-term futures aren’t the same across markets. Equity, commodity and crypto-related products each follow their own calendars. As an example, many CME-listed futures follow a quarterly expiration cycle, with the Last Trading Day (LTD) falling two business days before the third Wednesday of the contract month.
It's also worth noting a type of futures contract that doesn’t expire – perpetual futures. When trading these contracts, you can hold a position indefinitely (as long as your margin requirements are met).
Discover the difference between traditional futures and perpetual futures
Futures month codes are single letters used to identify the contract month in a futures ticker. For example, H represents March. So, a futures symbol ending in H27 would typically refer to the March 2027 contract.
January | F | July | N |
February | G | August | Q |
March | H | September | U |
April | J | October | V |
May | K | November | X |
June | M | December | Z |
When a futures contract reaches expiration, it can settle in one of two ways: Cash or physical delivery. Knowing which one applies to your contract is the single most important detail for avoiding surprises.
At expiration, a trading account is credited or debited based on the contract's final settlement price, without any transfer of the underlying asset. Cash settlement is often used for products like equity index futures and Bitcoin futures, where it’s much more straightforward to adjust the account balance than deliver physical assets.
At expiration, the seller delivers the underlying asset to the buyer using the future exchange’s approved delivery process. For most retail traders, taking physical delivery of something isn't the goal. That’s why they commonly close or roll physically-deliverable futures positions before expiration – to avoid an unwanted delivery obligation.
Note: When trading futures on the Crypto.com App or Crypto.com Exchange App, you can only access cash-settled futures contracts.
Cash settlement | Physical delivery | |
Settlement mechanic | Account credited or debited based on final settlement price | Underlying asset transferred seller to buyer via exchange process |
Common asset classes | Equity index futures, Bitcoin futures | Commodity futures moved through approved facilities |
Trader suitability | Often held by traders who don't want the underlying asset | Traders who commonly close or roll beforehand |
Before a futures contract expires, a trader has three choices: Close the position (offset), hold it until settlement or roll it forward.
Rolling a futures contract can come with extra costs, depending on how futures prices compare across different expiration dates. ‘Contango’ is when later-dated futures contracts are priced higher than the current market price. ‘Backwardation’ is the opposite, with later-dated contracts priced lower.
This can affect the cost of rolling. In contango, moving into a later contract may cost more. In backwardation, it may cost less. The exact impact depends on market prices at the time you roll. Liquidity matters, too. In a more liquid market, it’s easier to close your current contract and open the next one at similar prices.
Two dates matter most as expiration of a futures contract nears: Last Trading Day (LTD) and First Notice Day (FND). Understanding these dates can be the difference between a clean exit and an unexpected delivery obligation.
For many of CME Group's physically settled commodity contracts, FND occurs roughly two to four weeks before the contract's expiration or LTD, but individual contract calendars vary. As mentioned earlier, FND timing can vary with each commodity and exchange, so there’s no single universal schedule that applies across all futures contracts.
Important: Broker-level deadlines for closing or rolling a physically deliverable position are often set several days earlier than the exchange's official First Notice Day. Always confirm exact cutoff times directly with your platform rather than assuming the exchange calendar is the one that binds you.
The core difference between futures and options expiration comes down to obligation. Once a futures contract expires, both buyer and seller are committed. Any open position has to be settled under the contract's terms, unless it was closed or rolled beforehand. An options contract typically gives its holder ‘a right to exercise’ rather than an obligation to settle.
Learn more about futures vs. options
Futures at expiration | Options at expiration | |
Commitment level | Mandatory settlement unless closed or rolled | A right to exercise rather than a standing obligation |
Expiration outcome | Position settles according to contract terms | Outcome depends on the contract and holder's choice |
When do futures expire?
Fixed-term futures expire on a predetermined date set by the issuing exchange, when trading stops and open positions move to settlement. Timing isn't uniform – First Notice Day (FND) timing can vary with each commodity and exchange.
Do futures expire automatically?
Yes, if you haven't offset or rolled the contract beforehand, it expires and the position proceeds to settlement according to its terms.
Do futures contracts expire on the same day every month?
Not necessarily. There’s no single universal schedule across all futures contracts. Some products, such as certain forex futures, follow a quarterly rather than a monthly cycle.
What happens if I hold a futures contract until expiration?
It depends on the settlement type. If a cash-settled futures position is held to expiration, it’s settled based on the difference between the trade price and the final settlement price. No underlying asset is delivered. If a physically deliverable position is held through expiration without being closed, the holder may be required to make or take delivery of the underlying commodity according to the contract's rules.
What is rolling a futures contract?
Rolling means closing the expiring contract while simultaneously opening an equivalent position in a later-dated month. Roll costs vary with market conditions such as contango or backwardation.
What is the difference between Last Trading Day and First Notice Day?
Last Trading Day is the final session to open or close the contract before expiration. First Notice Day is the first day a delivery notice may be received on a physically deliverable contract.
Do crypto futures contracts involve physical delivery?
Settlement depends on the specific product. Cash settlement is used for products such as Bitcoin futures, where the account is adjusted for the difference between entry and final settlement price rather than delivering the underlying asset.
Important information: This is informational content sponsored by Crypto.com and should not be considered as investment advice. Trading cryptocurrencies carries risks, such as price volatility and market risks. Past performance may not indicate future results. There's no assurance of future profitability. Before deciding to trade cryptocurrencies, consider your risk appetite.
This article is for informational purposes only and should not be construed as financial or investment advice. Past performance does not guarantee future results.
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Foris DAX Inc. (“Crypto.com”) introduces customers to Foris DAX FCM, LLC, a CFTC-registered Futures Commission Merchant, for the purpose of opening accounts to trade perpetual futures contracts (“Perpetual Futures”) offered by Crypto.com | Derivatives North America (CDNA), a CFTC-regulated exchange. Crypto.com is a guaranteed introducing broker of Foris DAX FCM, LLC. All customer accounts related to Perpetual Futures are carried by and held at Foris DAX FCM, LLC.
Trading Perpetual Futures on CDNA involves significant risk, including the risk of loss in excess of your initial margin deposit due to the use of leverage, and may not be appropriate for all. Perpetual Futures do not have an expiration date and positions may be held indefinitely, which can result in ongoing funding rate charges and amplified losses. You should carefully consider whether trading Perpetual Futures is appropriate for you in light of your investment experience, financial resources, and risk tolerance. Any trading decisions you make are solely your responsibility and at your own risk.
To trade Perpetual Futures, customers may fund their Foris DAX FCM, LLC account directly via credit card, debit card, ACH, wire, and other payment methods, or use their USD Account with Crypto.com to fund their Foris DAX FCM, LLC account. As an introducing broker, Crypto.com does not hold customer funds or margin. All customer funds are held by Foris DAX FCM, LLC, the clearing Futures Commission Merchant and guarantor of Crypto.com.
