Futures mechanics
What is the First Notice Day (FND) and why must speculative retail day traders exit contracts prior to it?
By Easy Money Scanner · Educational reference · Not investment advice
The short answer
First Notice Day is the date after which a short position holder may be assigned a physical delivery obligation on a futures contract.
How it works
Speculative retail traders in physically settled contracts typically must close positions before FND to avoid delivery logistics and obligations.
An example
Retail CL traders exit positions before FND to avoid oil delivery obligations.
Risk & limitations
Holding a long or short position past FND can trigger real delivery requirements.
Examples are hypothetical, not trade recommendations. US contract and regulatory references do not automatically apply in Canada. Rules, margin requirements and broker policies can change; confirm them with the relevant authority and your broker.