Expiry is the scheduled end of a dated derivative’s life. At that point, outstanding rights or obligations are handled under its contract terms. The event matters differently for futures and options, and the final cash or asset transfer may follow a separate settlement timetable.
What happens to an open contract
An expiring futures position that remains open proceeds to the specified settlement process, which may involve a cash adjustment or delivery. A cash-settled crypto future does not automatically deliver the underlying coin merely because its name contains BTC or ETH.
An option may be exercised, settled or expire without value. The outcome depends on its payoff, exercise style and the venue’s exercise procedures. An option being in the money does not by itself tell the buyer’s net profit after premium and costs.
Managing the approaching deadline
Closing a position before the relevant trading cutoff ends that exposure through a trade. Rolling involves closing the expiring contract and opening a later contract; it does not extend the original contract’s life.
Liquidity may migrate between maturities as expiry approaches. Trading cutoffs, exercise deadlines and settlement reference prices therefore deserve separate attention. Perpetual contracts have no scheduled expiry, although delisting or exceptional termination can still end them under venue rules.