Contract Rollover to Avoid Physical Settlement at FYERS

How can I rollover a contract to avoid physical settlement?

Rollover refers to the process of transferring your position from the near-month expiry contract to the next month's expiry contract, typically on the expiry day. By doing this, you're essentially closing your current position and simultaneously opening a new one for the subsequent month.

Let's illustrate with an example: Suppose Mr. Z holds a position in the TCS Futures contract for May that's nearing its expiry. If he intends to keep this position for June but wants to evade physical delivery, he'd square off his May contract and initiate an identical position for June. This action constitutes a rollover.

If you're considering a rollover, we recommend being vigilant about contract expiry dates and understanding the implications of physical delivery.

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