How does FYERS handle the square-off of stocks due for physical settlement on expiry?
When trading stock Futures and Options (F&O) on the NSE, it's critical to understand how physical settlement is managed. FYERS follows a proactive square-off policy to help clients avoid unintended delivery obligations at expiry.
Square-Off Timings for Margin Shortfall Positions
- Starts 4 Days Before Expiry:
Square-offs begin four trading days prior to expiry. If expiry is on a Thursday, FYERS starts the square-off process from the preceding Friday. - Holiday Adjustments:
If a public holiday falls within the expiry week, square-offs begin earlier, typically from the Thursday of the previous week.
Communication and Alerts
- FYERS sends timely alerts to your registered mobile number and email address.
- Notifications inform you of upcoming physical settlement actions and any required steps, especially if you hold near-month Futures or in-the-money Options.
For More Details
We recommend referring to our detailed blog post: FYERS Policies on Physical Settlement of Stock Derivatives.
It covers edge cases, risk handling, and expiry-related actions in depth.
What If...
| Scenario | What You Can Do |
|---|
| You receive a square-off alert | Take immediate action—either add margin or close the position. |
| You're unsure if your F&O position qualifies | If it's a stock future or in-the-money option at expiry, it’s likely subject to physical delivery. |
| You miss the square-off | Be prepared for delivery settlement; ensure you have sufficient shares or funds. |
Tip: Always monitor expiry-week positions closely. Unattended stock F&O trades can lead to delivery obligations even with small margin shortfalls.
Last updated: 17 Jun 2025
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