Can I hold onto derivatives contracts indefinitely?
No, you can't hold onto derivatives contracts indefinitely. These contracts are time-bound and have specific expiry dates. They are valid only for a set duration and expire either on a weekly or monthly basis, depending on the type of derivatives.
- Equity derivatives: Futures and options on individual stocks or stock indices typically have both weekly and monthly expiries. For instance, while the monthly expiry for stock indices like Nifty & Bank Nifty is usually on the last Thursday of the month, there are also weekly expiries for options which might occur throughout the week. If any expiry day is a holiday, they expire on the previous trading day.
- Currency derivatives: Futures and options contracts on currency pairs also have weekly and monthly expiries. The exact day of the week for weekly expiries can vary, so it's essential to keep track of the specific currency pair's expiry calendar.
- Commodity derivatives: Futures and options contracts on commodities like gold, oil, and others have expiry patterns that differ depending on the specific commodity and contract.
We recommend keeping track of these expiry dates to avoid unexpected obligations or potential losses. Regularly review your positions and plan accordingly as the expiry date approaches.
Related Articles
Can I trade in BSE Derivatives?
Yes, you can trade in both BSE Index derivatives and currency derivatives on FYERS. BSE Index Derivatives: Available Contracts: Trade in SENSEX and BANKEX derivative contracts. Restrictions: BSE Stock and Sensex50 Index Futures & Options (F&O) ...
Can I trade currency derivatives in BSE at FYERS?
Yes, trading in the BSE currency derivatives segment is fully supported on FYERS platforms. To enhance your trading experience, FYERS offers a pre-defined watchlist specifically for Currency Near Futures. Here's how you can access it: Click on the ...
Can I short futures contracts without owning the underlying shares?
Absolutely. With FYERS, you can short futures contracts without the need to hold the underlying shares. This is because futures contracts are settled in cash, eliminating the requirement for physical possession of the securities in your Demat ...
What is the freeze quantity in currency derivatives set by the exchange?
The freeze quantity refers to the maximum number of lots that you can trade in a single order. This limit is set by the exchange at 10,001 lots for both currency and cross-currency derivatives contracts. If you attempt to place an order that exceeds ...
What are the lot sizes in Currency and Cross-Currency Derivatives?
Unlike Equity F&O, the quantity in the currency and cross-currency derivatives contracts are to be entered in lots. For instance, if you wish to Buy 20000 Qty in a EURINR contract, you can just enter 20 in the quantity section of the order window as ...