Maturity Date
The date a financial contract or bond expires and must be settled.
The maturity date is when a financial contract or bond expires and is settled.
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
Know the maturity of any contract you hold
Expect pricing to change near maturity
Track it alongside the trade date
Maturity Date Example
Say you hold a 3-month EUR/USD forward maturing June 30. On that date the contract settles at the agreed rate regardless of spot, and the position simply ends. No decision, no roll, done.
How Traders Use Maturity Date
Diary every maturity on entry day with an alert a week prior. Letting contracts mature by accident converts planning into admin. Roll or close early when liquidity starts thinning.
Related Terms
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