Been trading for a while but still not completely clear on the expiration process.
What happens when my option reaches the expiry time? Is there something I need to do or does it just close automatically?
Had a few trades recently where I wasn’t sure if I should close early or let them expire.
Everything settles automatically. Just check your account balance after expiry.
Trades settle automatically at expiry - no action needed. The platform updates your balance right away. Only close early if you’re clearly wrong. Don’t rush to close winning trades unless something significant changes. If the trade looks solid with 30 seconds left, it’s likely to hold. After 8 years in trading, I’ve found that patience is key. Trust your analysis and avoid second-guessing at the last moment.
Options close automatically when they expire - you don’t need to do anything.
• In-the-money: you get paid automatically
• Out-of-the-money: you lose everything
• At-the-money: depends on your broker’s rules
The platform settles everything within minutes after expiry.
When the timer hits zero, everything happens automatically. The platform checks if you’re right and either credits your account or takes the loss.
Closing early makes sense if you’re already profitable. Just know you’ll usually get less than waiting until expiry.
Most trades should run to expiration unless the market’s going against you with lots of time left.
Last month I had a gold trade that was slightly profitable with 30 seconds left. Panicked and closed early for 65% instead of waiting it out.
Turns out I was right at expiry - would’ve gotten the full 85%. That mistake taught me to trust my analysis.
Now I only close early if I’m clearly wrong with time left.