Termination Date

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DEFINITION of 'Termination Date'

The day on which a swap contract becomes invalid and no further exchanges will occur. A final payment is made upon a swap's termination.

The termination date is also referred to as a swap's "expiration date".

BREAKING DOWN 'Termination Date'

Unlike futures contracts, swaps are not standardized, allowing for more customized terms. While traded futures will all be settled on the third Friday of the expiration month, a swap may be terminated on whichever date the parties agree to.

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RELATED FAQS
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    Different types of companies may enter into futures contracts for different purposes. The most common reason is to hedge ... Read Full Answer >>
  3. What does a futures contract cost?

    The value of a futures contract is derived from the cash value of the underlying asset. While a futures contract may have ... Read Full Answer >>
  4. What are the main risks associated with trading derivatives?

    The primary risks associated with trading derivatives are market, counterparty, liquidity and interconnection risks. Derivatives ... Read Full Answer >>
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    The utilities sector exhibits a high degree of stability compared to the broader market. This makes it best-suited for buy-and-hold ... Read Full Answer >>
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