What Happens When a Derivative Contract Expires in FYERS? (Expiry, Rollover, and Settlement Explained)

What Happens When a Derivative Contract Expires in FYERS?

At FYERS, all derivative contracts such as Futures and Options (F&O) have predefined lifespans and expiry cycles. You cannot hold a futures or options position indefinitely. Once a contract reaches its expiry date, it is automatically settled by the exchange, either through cash settlement or physical delivery depending on the product type. Understanding how expiry works helps you manage rollovers, plan exits, and avoid unexpected settlements.

Duration and Expiry of Derivative Contracts

Derivatives traded on NSE through FYERS follow a three-month cycle that runs concurrently:

  • Near Month: The current month’s contract
  • Next Month: The following month’s contract
  • Far Month: The third month’s contract

Each of these contracts usually expires on the last Thursday of the month. If the last Thursday is a holiday, the expiry shifts to the previous trading day.

Example: A contract named NIFTY27JUN244800CE expires on 27 June 2024.

Identifying Expiry Dates on FYERS

You can easily identify expiry dates and contract types across FYERS platforms:

  • FYERS Web: Visit fyers.in/web to view expiry details directly in the Order Window, Option Chain, or Market Depth.
  • FYERS App: Open the scrip, tap on Details, and check the expiry field before placing an order.
  • FYERS Trader: Log in at trade.fyers.in to view expiry dates under contract specifications or the Option Chain tab.

Derivative contract symbols also include expiry details. For example, the symbol NSE:NIFTY19NOV11500PE indicates:

  • NIFTY: Underlying index
  • 19NOV: Expiry month and year (November 2019)
  • 11500: Strike price
  • PE: Put Option

You can also check expiry information quickly in the Option Chain or Market Depth across all platforms before placing your trades.

Can Derivatives Be Retained After Expiry?

No. You cannot retain a derivatives position after expiry. Once the expiry date passes, the contract ceases to exist and is settled automatically.

If you wish to continue your exposure, you must roll over your position before expiry by completing the following steps:

  • Sell the current expiring contract
  • Buy the same underlying asset’s contract with a future expiry such as next month or next quarter

Example: If you hold a March Futures contract of ABC Ltd and wish to stay invested, sell the March contract and buy the April or June contract to maintain your position.

Settlement Types at Expiry

1. Cash-Settled Contracts

This applies mainly to index derivatives such as NIFTY and BANKNIFTY.

  • On expiry, profits or losses are calculated using the final settlement price published by the exchange.
  • No delivery of shares or commodities takes place.
  • The result is credited or debited automatically in your FYERS account.

2. Physically Settled Contracts

This applies to stock derivatives which are F&O contracts on individual stocks.

  • On expiry, actual delivery of the underlying shares occurs.
  • If you hold a long position, you must take delivery of the stock. If you hold a short position, you must deliver the stock.
  • Margins are blocked and obligations are settled as per SEBI and exchange guidelines.

To learn more, refer to our detailed policy: FYERS Policies on Physical Settlement of Stock Derivatives

How Long Do Derivative Contracts Last?

  • Most F&O contracts are valid for up to three months at a time, known as near, next, and far month contracts.
  • Equity derivatives may have both weekly and monthly expiries. Weekly expiries usually apply to indices.
  • Currency and commodity derivatives follow expiry schedules defined by the respective exchanges.
  • If an expiry date falls on a holiday, it moves to the previous business day.
Derivative contracts are automatically settled at expiry. If your position is not squared off or rolled over on time, you may face delivery obligations or margin debits depending on the settlement type. Always maintain adequate funds and holdings to meet these requirements.
To avoid unwanted settlements, set expiry reminders and check expiry directly in the Order Window, Option Chain, or Market Depth on FYERS Web, App, or Trader before placing your trades.

What If...

ScenarioExplanation
I try to retain my futures position after expiryThis is not possible because once the contract expires, it is settled automatically. You can roll over before expiry to maintain exposure.
I forget to roll over before expiryThe position is settled based on the contract type, which could be cash or physical. It cannot be retained after expiry.
I hold a NIFTY options contract till expiryThe contract will be cash-settled, and your profit or loss will be reflected in your FYERS account.
I hold a stock options contract till expiryThe contract will be physically settled. Ensure margin and stock obligations are met in time.
I am unsure about the expiry dateCheck the contract name or use the Option Chain to confirm the expiry. The expiry date is also visible in Market Depth across all FYERS platforms.
I traded the wrong expiry contract by mistakeYou can exit the trade before expiry, but it cannot be reassigned. Always verify the expiry before placing an order.

Last updated: 04 Nov 2025

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