Maturity Date
The date a financial contract or bond expires and must be settled.
Quick answer
The maturity date is when a financial contract or bond expires and is settled.
Definition
The maturity date is when a financial contract, bond or loan comes due and is settled. For derivatives it marks the end of the contract and the final settlement of value. Traders must track it because a position behaves differently as it approaches maturity.
How It Works
- It marks the end of the contract
- Value is settled at maturity
- Bonds and derivatives both carry it
Trading Tips
1
Know the maturity of any contract you hold
2
Expect pricing to change near maturity
3
Track it alongside the trade date
Related Terms
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