How to roll over a contract during physical settlement?

How to roll over a contract during physical settlement?

​Rollover is nothing but switching the near-month expiry contract with the next month's expiry contracts on the expiry day. In simple words, It means to exit from the near month expiry contract and take a new position in next month's expiry contract.


For instance, Mr. Z has a position in the TCS Futures contract (May) that is going to expire in the next few days. If Mr. Z wishes to hold the TCS contract for the next month, he can square off the existing contract and take the same position in the next month's expiry with the intention to avoid physical delivery. This process is called Roll Over.


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