Future contracts are allowed to expire as they give out a guarantee to both parties regarding a fair value of the underlying asset. When the final trading date arrives, the contract either expires or matures.
ES1 and ES2 futures are both contracts that allow investors to speculate on the future price of the SP 500 index. The key difference between them is the expiration date. ES1 futures expire in March, June, September, and December, while ES2 futures expire in the months in between (February, May, August, and November). This difference in expiration dates can impact trading strategies and risk management for investors.
All of the superstar contracts expire at different times depending on when they were renewed
Contracts typically expire when the terms outlined in the agreement are fulfilled, the specified time period ends, or when both parties agree to terminate the contract.
Quadruple witching is the date on which contracts for stock index futures, stock index options, stock options and single stock futures all expire on the same day. These days occur on the third Fridays of March, June, September and December and lead to increased volume and fluctuations in the markets.
There are four "triple witching" days on the calendar: the third Fridays of March, June, September and December. On these days, the contracts for stock index futures, stock index options and stock options all expire.
most of the baled
Futures contracts expire all the time. When they do, someone will show up at your doorstep with nine truckloads of wheat and expect you to have money to pay for it. This is why I keep telling people "don't buy a futures contract if you don't use the underlying." If you are a speculator and you bought wheat futures at $6, and wheat dropped to $5, you are going to lose $5000 because I can almost guarantee you don't have any way to handle 5000 bushels of wheat.
Since futures contracts on a market index expire only once a month, Fair Value is the Forward Value (at the time of a futures contract expiration) of an index spot price, where compounding takes into account time to expiration and dividends lost due to holding index futures rather than underlying stocks. If Fair Value before the open is lower than the futures contract price, you may expect that a market index will go higher after the opening bell.
john cenas expires January 2011
Contracts or agreements that are set to expire at the same time.
The spot market sells things for immediate, or "on the spot," delivery. The futures market lets you arrange to set the price of something now that you'll pay for and get later. Commodities users like the futures market because it lets them predict costs. If you make twinkles it's easier to calculate the price of them a year out if you know what sugar will cost a year out. The risk is sugar will be cheaper a year from now than your futures contract has it priced at; that's mitigated by the risk sugar will be really high a year from now and a box of twinkles that sells for $2.99 will have $2.98 worth of sugar in it if you didn't have a futures contract outstanding.
Kurt Angle contract expires in August, 2011