# First Notice Day and Last Trading Day

> First notice day is when sellers can start delivering on physically settled futures. Learn what it means, how it differs from last trading day and how to plan.

Source: https://learn.tradelabsai.com/futures/first-notice-day/  
Track: Futures · Level: Advanced · Updated: 2026-10-03  
Publisher: TradeLabs AI (https://tradelabsai.com). Education, not financial advice.  
Cite as: TradeLabs Learn, "First Notice Day and Last Trading Day", https://learn.tradelabsai.com/futures/first-notice-day/

First notice day (FND) is the first day on which the holder of a short position in a physically settled futures contract can notify the exchange that they intend to deliver the underlying asset. From that day on, anyone still holding a long position can be assigned delivery. For speculators who have no interest in receiving barrels of oil, bushels of corn or Treasury notes, first notice day is the practical deadline for closing or rolling long positions.

## First notice day vs last trading day

| Date | Meaning | Who should care |
|---|---|---|
| First notice day | Shorts can begin issuing delivery notices; longs may be assigned | Long holders of physically settled contracts |
| Last trading day | Final day the contract trades; remaining positions go to delivery or final settlement | Short holders, and anyone still in the contract |
| Last delivery day | Final day delivery can occur | Commercial participants |

For some contracts, first notice day comes before last trading day (for example, many grain, metal and Treasury futures). For others, such as WTI crude oil, trading ends before the delivery period begins, so the last trading day is the key date.

## Typical first notice day rules

| Contract | First notice day (simplified) |
|---|---|
| Corn, soybeans, wheat (CBOT) | Last business day of the month before the contract month |
| Gold, silver (COMEX) | Last business day of the month before the contract month |
| Treasury futures (CBOT) | Second business day before the first business day of the contract month |
| WTI crude oil (NYMEX) | Delivery follows the last trading day; the key date is the last trading day itself |

Exact rules are in each contract's specifications and can change. See [Contract Specifications](https://learn.tradelabsai.com/futures/contract-specifications/).

**Example: December gold**
For the COMEX December gold contract, first notice day falls on the last business day of November. A trader long December gold who does not want delivery should roll to February (the next active month) before then, typically a few days earlier when liquidity moves. If the position is still open on first notice day, the trader could be assigned 100 troy ounces of gold, requiring payment of the full contract value, more than $200,000 at a gold price of $2,000 an ounce.

## What happens to liquidity

As first notice day approaches, speculators exit the expiring contract. Volume and open interest shift to the next month, and the expiring contract's spreads can widen. The remaining participants are mostly commercial firms prepared to make or take delivery. See [Rolling Futures Contracts](https://learn.tradelabsai.com/futures/rolling-futures-contracts/).

## Broker deadlines

Many retail brokers set their own cut off, often several business days before first notice day, after which they will not allow new positions in the expiring contract and may liquidate existing long positions. Their margin requirements may also rise sharply for positions held into the delivery period. Check your broker's calendar. See [Futures Margin: Initial and Maintenance](https://learn.tradelabsai.com/futures/futures-margin/).

## Planning around first notice day

1. **Note FND and last trading day** for every contract you trade.
2. **Roll early,** when volume in the next month overtakes the current one.
3. **Use calendar spread orders** to roll in one transaction. See [Calendar Spreads in Futures](https://learn.tradelabsai.com/futures/calendar-spreads-in-futures/).
4. **Watch broker emails** and platform alerts about expiring positions.
5. **For shorts,** know the last trading day and whether you could be required to deliver.

## Why it matters for data and backtests

Continuous futures series often roll a few days before first notice day for physical contracts, so backtests reflect where speculators actually trade. Using a series that rolls on the last trading day could include illiquid days with misleading prices. See [Continuous Futures and Back-Adjustment](https://learn.tradelabsai.com/futures/continuous-futures/).

## Frequently asked questions

### What is first notice day in futures?

The first day on which sellers of a physically settled futures contract can notify the exchange of intent to deliver, after which long holders may be assigned delivery.

### What happens if I hold a futures contract past first notice day?

You may be assigned delivery of the underlying asset, and your broker may liquidate the position or charge higher margin.

### Do cash settled futures have a first notice day?

No. Cash settled contracts, such as E-mini S&P 500 futures, settle in cash and have no delivery notices.

Next, learn how traders profit from the gap between futures and spot in [Cash-and-Carry Arbitrage](https://learn.tradelabsai.com/futures/cash-and-carry-arbitrage/).

## Continue learning

- Next lesson: [Cash-and-Carry Arbitrage](https://learn.tradelabsai.com/futures/cash-and-carry-arbitrage/)
- Previous lesson: [Physical Delivery vs Cash Settlement](https://learn.tradelabsai.com/futures/physical-delivery/)
- Related: [Physical Delivery vs Cash Settlement](https://learn.tradelabsai.com/futures/physical-delivery/): Physically settled futures end with the actual asset changing hands. Learn the delivery process, who delivers, grades and locations, and how speculators avoid it.
- Related: [Rolling Futures Contracts](https://learn.tradelabsai.com/futures/rolling-futures-contracts/): Rolling moves a futures position from an expiring contract to a later one. Learn when to roll, how to use calendar spreads, roll costs and common roll schedules.
- Related: [Contract Months and Expiration](https://learn.tradelabsai.com/futures/contract-months-and-expiration/): Futures trade in specific contract months with letter codes and fixed expiry rules. Learn month codes, the front month, quarterly cycles and how expiry works.
- Related: [Contract Specifications](https://learn.tradelabsai.com/futures/contract-specifications/): Contract specifications define a futures contract's size, tick, months, hours and settlement. Learn every field, with examples for E-mini S&P, crude oil and gold.
- Related: [Futures Margin: Initial and Maintenance](https://learn.tradelabsai.com/futures/futures-margin/): Futures margin is a performance bond, not a loan. Learn initial and maintenance margin, day trading margin, margin calls, SPAN and how to avoid forced liquidation.