When are physical settlement symbols blocked for trading?
As part of the physical settlement process for stock derivatives, FYERS blocks trading in certain expiring contracts nearing expiry to protect traders from unintended delivery obligations. Here's how the blocking mechanism works.
Blocking Period
- Near-Month Contracts Only:
Contracts that are due for physical delivery (i.e., expiring within the current week) are typically blocked for trading. - When Does Blocking Start?
Blocking usually begins in the expiry week, often 1–3 days before expiry, based on exchange and internal risk control protocols.
What Remains Available?
- Far-Month Contracts Stay Open:
You can still trade the next month and far month futures of the same scrip, even if the near-month one is blocked. - Options Trading:
Depending on the moneyness and settlement risk, certain deep in-the-money options may also be blocked during the expiry window.
To understand the rationale, timelines, and delivery obligations around physical settlement, read our blog:
Physical Settlement of Stock Derivatives
What If...
| Scenario | What You Can Do |
|---|
| You can’t find a stock future nearing expiry | It may have been blocked due to settlement rules—use next month's contract. |
| You were planning to carry the contract to expiry | Ensure you have enough funds or stock to fulfill physical delivery. |
| You’re unsure which contracts are affected | Check FYERS Notice Board or contact support during expiry week. |
Tip: Plan ahead during expiry week. Don’t rely on last-minute trades in near-month contracts subject to physical settlement.
Last updated: 17 Jun 2025
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