“The Expiry List” in trading is a bit like a helpful calendar that reminds you when to use your special coupons (futures and options). It’s important for traders so they can make the best decisions at the right time. Just like how you wouldn’t want to miss using your Reliance Trends coupon, traders don’t want to miss the opportunities this list provides!
What is “The Expiry List”?
Simple Explanation: Imagine you have a coupon to buy your favorite dress in Reliance Trends, but it has a date on it, and you can only use it until that date. In trading, futures and options are like those coupons, and “The Expiry List” tells us when these coupons will expire.
Why It’s Important: Knowing when these trading coupons (futures and options) expire is super important for traders. It’s like knowing when to use your ice cream coupon before it’s too late.
Why Do Traders Use “The Expiry List”?
Planning: Just like you plan when to use your ice cream coupon, traders plan when to buy or sell based on when futures and options will expire.
Avoiding Surprises: No one likes bad surprises, right? The list helps traders not to be caught off guard when their futures and options are about to expire.
Futures and Options
Futures: These are promises to buy or sell something in the future at a price set today. Like saying, “I promise to buy your bicycle for 3K next month.”
Options: These give you the choice (but not the obligation) to buy or sell something in the future. It’s like saying, “I might buy your bicycle next month for 3K, but I’ll decide later.”