How long do derivative contracts last?
Derivative contracts, such as Futures and Options (F&O), are time-bound instruments with a fixed expiration cycle. Understanding their lifespan is important to avoid unexpected position closures and to align your trading strategy with the contract timeline.
Standard duration of derivative contracts
On FYERS, derivative contracts traded on NSE typically follow a three-month cycle. At any point, you’ll see contracts for:
- Near Month – expires in the current month
- Next Month – expires in the next month
- Far Month – expires in the third month
Each of these contracts has a fixed expiry date, which is typically:
- The last Thursday of the respective month (for index and stock derivatives)
- If the last Thursday is a holiday, expiry shifts to the previous trading day
What to keep in mind
- Contracts automatically expire after the expiry date.
- If you hold a position in a contract till expiry, it may be settled physically or in cash, depending on the product.
- Always check expiry in the contract symbol (e.g., NIFTY27JUN244800CE means expiry on 27th June 2024).
What If...
| Scenario | Explanation |
|---|
| I forget the expiry date | Your position will expire automatically. You may face settlement or delivery consequences. |
| I want to trade long-term | Use far-month contracts or roll over your position monthly. |
| I’m unsure of expiry from the scrip | Refer to the scrip name or contract specifications on FYERS to confirm the expiry date. |
Always confirm the expiry date before entering a trade. Use the order window on FYERS to verify contract details, including symbol, expiry, and margin requirements.
Last updated: 28 Jun 2025
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