How Does FYERS Handle the Square-Off of Stocks Due for Physical Settlement on Expiry?
When you trade stock Futures and Options on NSE, it is important to know how physical settlement is handled near expiry. We at FYERS follow a proactive square-off policy to help you avoid unintended delivery obligations at expiry.
Square-Off Timings for Delivery Readiness
- Starts 4 trading days before expiry: If expiry is on a Thursday, square-off actions can begin from the preceding Friday.
- Holiday adjustments: If a public holiday falls in the expiry week, actions may begin earlier, typically from the Thursday of the previous week.
Communication and Alerts
- Push notifications and email: We send in-app push notifications and emails to your registered contact details with clear next steps for delivery readiness.
- Who receives alerts: Clients holding near-month stock futures or stock options that can lead to delivery at expiry, especially if options are in the money.
- Keep contacts current: Ensure your registered mobile number and email are updated and app notifications are enabled.
- Add funds quickly when asked: Follow the steps here on how to add funds to your account.
Delivery Readiness Requirements
Exact amounts and timelines are communicated in our alerts. Typical expectations are:
- Long stock options near expiry: Maintain delivery margin as notified in our alerts to continue holding through expiry.
- Stock futures or in-the-money stock options carried to expiry: Provide funds or holdings covering the delivery obligation up to the full contract value, as communicated.
- Current month only: Physical settlement applies to current month stock derivatives. You can take fresh positions in next month contracts.
- Learn more: Read our explainer on policies and edge cases FYERS policies on physical settlement of stock derivatives.
Important: If the required delivery margin or holdings are not provided by the deadline communicated in our push notification or email, our RMS team may square off eligible positions at market price during the square-off window. Execution can involve slippage and square-off charges. Please add funds or reduce exposure in advance.
What If…
| Scenario | What you can do |
|---|
| You receive a square-off alert | Act immediately. Add funds using the guide linked above or close the position to avoid delivery risk and RMS action. |
| You are unsure if your F&O position qualifies | Stock futures and in-the-money stock options at expiry are subject to physical delivery. If in doubt, square off or add sufficient funds or shares. |
| You miss the square-off window | Be prepared for delivery settlement. Ensure you have adequate funds or the required shares for obligations. |
Tip: Monitor positions closely in expiry week. Do not rely on last-minute exits in near-month stock contracts that may be blocked for risk control.
Last updated: 16 Dec 2025
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