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.