When Are Physical Settlement Symbols Blocked for Trading?
As part of the physical settlement process in stock derivatives, we at FYERS block trading in certain expiring contracts close to expiry to protect clients from unintended delivery obligations. Here is how the blocking mechanism works.
Blocking Period
- Near‑month contracts only:
Contracts that are due for physical delivery and are expiring within the current week are typically blocked for trading. - When does blocking start?
Blocking usually begins in the expiry week, often 1 to 3 days before expiry, based on exchange guidelines and our internal risk controls.
What Remains Available?
- Far‑month contracts stay open:
You can trade the next‑month and far‑month futures of the same scrip even if the near‑month is blocked. - Options trading:
Depending on moneyness and settlement risk, certain deep in‑the‑money options may also be blocked during the expiry window.
For the rationale, timelines and delivery obligations around physical settlement, read our detailed post: Physical Settlement of Stock Derivatives
Important: Blocking windows can vary by scrip and exchange circulars. Always check near expiry and plan positions accordingly.
What If…
| Scenario | What you can do |
|---|
| You cannot find a stock future nearing expiry | It may be blocked due to physical settlement risk. Consider the next‑month contract for continuity. |
| You planned to carry the contract to expiry | Ensure you have sufficient funds or stock for delivery obligations. If unsure, contact us. |
| You are unsure which contracts are affected | Check the FYERS Notice Board during expiry week or contact us for confirmation. |
Tip: Plan ahead in expiry week. Do not rely on last‑minute trades in near‑month contracts that are subject to physical settlement.
Last updated: 11 Dec 2025