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FuturesBeginner

Last Trading Day

The final session in which a futures contract can be traded before it expires and moves to settlement or delivery.

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Last trading day (LTD) is the final day on which a futures contract can be bought or sold on the exchange. After LTD, no new trades are accepted; any remaining open positions proceed to settlement.

For cash-settled equity futures (ES, NQ, YM, RTY), LTD is typically the Thursday before the third Friday of the contract month. For physically delivered commodity contracts, LTD is before FND to allow for the delivery logistics.

Traders who have not rolled or closed by LTD will be subject to automatic settlement — cash or physical — which may differ from the market price at which they would have chosen to exit.

#futures#expiry#settlement

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