What happens when a derivative contract expires?
When a contract reaches expiration, different settlement processes come into play based on the type of contract. For cash-settled contracts, such as Index derivatives, all outstanding positions are settled in cash. Any profit or loss you've incurred gets directly adjusted in your trading account.
However, for physically settled contracts, specifically equity derivatives, the maturity mandates either delivery or receipt of the respective shares. We strictly enforce FYERS's policies on physical settlements. For comprehensive insights on physical settlement, kindly refer to this blog.
Additionally, for those keen on staying updated about imminent contract expirations in MCX, we suggest keeping a watchful eye on our Notice Board.
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