What is 'Odd Date'

The odd date refers to the maturity date for a futures contract that does not fall exactly on a fixed term such as three months, but instead falls a few days earlier or later. This can be agreed upon in advance or result from the timing of a holiday such that it impacts the length of the contract.

Breaking Down 'Odd Date'

The odd date, also known as the broken date, applies to investments such as bonds, futures contracts and options where it is agreed in advance the maturity date can be more flexible than with most futures contracts. The majority of bond investments rely upon set maturity dates as part of the predictability of the investment. This predictability is important to investors looking to create balanced portfolios containing a certain number of reliable investments of various durations.

For example, a 90-day bond purchased on May 1 will mature on August 1. A contract with an odd date expiration might mature a few days before or after August 1st. These odd dates can be the result of holidays falling within the contract period or due to other administrative factors. A challenge with contractual odd dates is the added administrative costs typically seen due to the non-conformity of the end date. Because they are an exception to most fixed contracts, they require more administrative attention. Odd date contracts can be found in the world of derivatives and foreign contracts, as well as in a variety of other futures contracts.

Other types of maturity dates include the spot date, the declaration date and the trade date. The spot date refers to the date when the transaction is settled and funds are distributed. The declaration date is the last date a holder of an option must declare whether they wish to exercise their option. The trade date is the month, day and year that a trade is made.

Paying Attention to Odd Dates

Investors need to be aware that the maturity date for an option has an odd date because this can affect the price received. It is rare but does happen that a few days difference can make a meaningful difference in the price received versus the price anticipated.

For example, within the world of foreign currency exchange, odd dates are common and currency markets have a tendency to move in step with world or national news, which may bring surprises as quickly as overnight. 

Odd dates can lead to surprises within commodity markets. For example, a futures contract for soybeans could be adversely affected by news of world tariffs in a trade war.  All it takes is a few days difference in the maturity date versus what was expected to lead to significant losses for the unaware investor.



  1. Broken Date

    Broken date is a term used to describe a nonstandard maturity ...
  2. Date Certain

    Date certain is a term identifying the date on/by which the specified ...
  3. Record Date

    The record date is the cut-off date, established by a company, ...
  4. Settlement Date

    A settlement date is defined as the date a trade is settled or ...
  5. Long Dated Forward

    A long dated forward is a type of forward contract commonly used ...
  6. Post Date

    The post date is the day, month and year when a card issuer posts ...
Related Articles
  1. Investing

    Target Date Funds: More Popular, Cheaper Than Ever

    How target date funds can help investors weather volatility when it comes to saving for retirement.
  2. Financial Advisor

    5 Ways to Date on a Budget

    Dating on a budget doesn't have to be boring. Try these 5 tips to find the best dates on a budget.
  3. Investing

    The Top 3 Intermediate Bond ETFs for 2016

    Learn more about intermediate-term bond ETFs, why they are popular as 401(k) investments and three of these funds that are among the most popular.
  4. Trading

    An Overview Of Futures, Derivatives, and Liquidity

    Gain an understanding of futures and derivatives, and how these instruments are meant to mitigate market risk.
  5. Trading

    Beginner's Guide To Trading Futures

    An in-depth look into what futures are, and how you can build a solid base to begin trading them.
  6. Financial Advisor

    Target Date Funds and the Fiduciary Rule: What to Know

    Are you a fan of selling target date funds to clients? You may be interested in how the market for them will change with the new DoL fiduciary rule.
  1. Do I Own a Stock on the Trade Date or Settlement Date?

    Find out why you don't become a legal shareholder until the settlement date. Read Answer >>
  2. What is the difference between record date and payable date?

    Learn how to ensure receiving stock dividends by the payment date on record and important dates to keep track of pertaining ... Read Answer >>
  3. Finding out the Ex-Dividend Date for a Stock's Dividend

    Learn about the various information sources from which investors can obtain information about upcoming ex-dividend dates ... Read Answer >>
  4. Is Dividend Payment Shown in Shareholder's Equity?

    When is a dividend payment recognized in the shareholders equity portion of the balance sheet? Read Answer >>
Trading Center