Last Trading Day

This day indicates the closing day on which an option or a futures contract can be traded. This is a day on which the trading finishes before the underlying asset is delivered.

The physical commodity has to be delivered in the hands of the buyer from the hands of the seller if there is no alternative arrangement. To exemplify, if you do not end up closing your position on the last trading day, you will be getting the underlying asset or security. If contract was for oranges, you should accept the de of real pork bellies.

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October 3, 2008 · Filed Under Commodity Options Trading

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