Stock Market · Futures Trading

Expiry & rollover mechanics

Every Indian futures contract has a fixed monthly expiry. Since September 2025, NSE contracts (Nifty, Bank Nifty, stock futures) expire on the last Tuesday of the month, while BSE Sensex contracts expire on the last Thursday. (Before Sep 2025 everything expired on Thursday. You'll still see old material that says so.) On that day, all open positions are settled and the contract ceases to exist.

Three monthly contracts always exist

At any time, you can trade futures expiring in the current month (near month), next month (mid month), and two months ahead (far month). As the near month expires, the mid month becomes the new near month.

Example on April 15 (NSE last-Tuesday expiries):

• April futures expiry: April 28
• May futures expiry: May 26
• June futures expiry: June 30

Expiry day mechanics

On expiry day:

• Cash-settled futures (Nifty, Bank Nifty): settled at the average of the underlying index's last 30-minute prices
• Stock futures: settled at the closing spot price. SEBI mandated physical delivery for stock F&O (more on this later).

> Many intraday traders exit positions by 3:00–3:15 PM on expiry day. Final settlement happens at 3:30 PM close price. Price can be volatile in the last 30 minutes.

Rollover

If you want to maintain a futures position beyond expiry, you must rollover:

1. Close your near-month position (sell if long, buy if short)

2. Open an equivalent position in the next month

Rollover cost = price difference between near and far month (usually positive for index futures. Covered in 'basis' chapter).

Last Tuesday of monthNSE monthly F&O expiry (BSE Sensex: last Thursday)

3:30 PM on expiry dayFinal settlement time

Many large traders roll their positions in the week leading up to expiry. High open interest in far-month contracts near expiry week is a rollover signal.

Takeaway. Since Sep 2025, NSE futures expire on the last Tuesday of each month (BSE Sensex: last Thursday). Rollover means closing near month and opening far month to extend a position. Physical delivery applies to individual stock futures.