How To Rollover Futures Contracts


The term "rollover" refers to the process of transferring a near-expiring front-month contract to a futures contract in a further-out month. What this means is that you'll close out your current contract and open a new one in the same time frame. The expiration date of any futures contract or option you purchase will be clearly marked on the contract (last day until which you can trade that contract). So, for example, you can only trade the Nifty 28th August future until August 28th. If you are considering investing or trading then we recommend you try Zebu’s as top brokers in share market we offer one of the best Indian trading platform with the lowest brokerage for intraday trading. If you want to hold your position till September, you will need to sell your August Nifty futures and buy a new September futures contract, which will be valid until September 29. Rolling over refers to the act of transferring from one month's pay to the next. Before the market closes on August 28th, you can perform this rollover at any moment. So, for example, if you bought Nifty August futures at 17070 and imagine Nifty futures is 17000 on 20th August, you now opt to roll over your position to September since you want to continue your nifty futures purchase position. This means that the Nifty August future will be sold and you will instead purchase the Nifty March future, which you can now hold until March 29th. You must pay brokerage and costs when you sell the August futures and you must pay brokerage and charges again when you buy the September futures. As with a typical buy-and-sell, there are fees involved. This SEBI circular and comments from the exchanges state that rollover of contracts during the ban period is not permitted. In the event that you hold a contract job that is currently in a ban, you will only be able to exit that contract.