What is expiry?

In the context of commodity trading, the term "expiry" refers to the date on which a futures or options contract expires. When a futures contract expires, the buyer and seller of the contract are required to fulfill their obligations by either delivering or receiving the commodity, or by closing out their positions and taking the profits or losses in cash.

For options contracts, the expiration date is the last day on which the holder of the contract can exercise their option to buy or sell the underlying commodity. If the option is not exercised by the expiration date, it becomes worthless.

The expiration date for a futures or options contract is typically set at the time the contract is traded and is usually several months in the future. It is important for traders to be aware of the expiration dates of their contracts, as this will determine when they need to take action to either fulfill their obligations or close out their positions.