Definition ∞ Market Expiration refers to the predetermined date and time when a derivatives contract, such as a futures or options contract, ceases to be valid. At this point, the contract is either settled financially or through physical delivery of the underlying asset. The expiration date dictates the final trading period for the contract and its ultimate settlement terms. It represents a critical event for participants holding derivative positions.
Context ∞ In the digital asset markets, Market Expiration for Bitcoin and Ethereum derivatives often leads to increased volatility as participants adjust their positions or roll over contracts. News reports frequently analyze the potential impact of large option expirations on spot prices, with particular attention to significant open interest levels at specific price points. The approach of Market Expiration can influence short-term price action and trading strategies.
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