Need help on contract rollover

Dear All,

Any help in regarding rolling over of future contract would be greatly appreciated

I am using PIB and currently holding nifty futures contract, suppose at the end of the contract period i dont want to sqareoff and would like to continue with the same what is the procedure for rollover.

Do, I have to contact Indiabulls for that or we can just do with our trading terminal.

Please help.


Thanks
trading123

simple.....
sell current month series and buy that of next month.
you need not contact indiabulls...just square of the holding and enter next month contract

hope i am clear

Current contract will expire on 29 jan , buy the feb contract to roll over.

Thank you arvindhbadri,

Thanks capricorn,

Just want to ask one more this as you said current contract expires on 29 jan now if i buy the feb contract then it will square off the 29 jan contract automatically or can square off at any time right.

Buying Feb contract will not square-off Jan contract automatically. Because as a trader, you can hold position in multiple contracts at the same time. So neither broker nor exchange will have any idea about your intention of buying Feb contract.
That means, you got place order to Square-off Jan's position and take new position in Feb futures.

For some reason if you can't close the Jan future position then exchange will settle it in Cash and net Profit/loss will be adjusted in your account. In western market, derivative products are not cash settled but they are to be physically settled. That means, if some one has bought oil futures and did not close the oil position then they need to pay the money and take delivery of oil. Similarly for unsettled stock futures, they need to take delivery of stocks. (aren't we lucky).

But this cash settlement results in high speculation and there has been talks that our exchanges should also adopt physical settlment apporach. Lets see how long this cash settlement approach survives.

Happy Trading.

You don't need to square off if you intend to roll over. The point everyone is missing is no square off no brokerage. Every penny adds to the bottom line.

Currently, any open futures position is adjusted everyday on marked-to-market basis using prev days settlement price and today's settlement price. Net P/L is Dr/Cr from the account. On the final day of contract, it will again be cash settled using prev days and last days price.. so
CAPRICORN, you are right, we will not see any big difference in settlement on final day when u comapre it to any other day of the month.

I think, what I explained was a bit theoratical for our mkt at this stage. It will make more sense when we have physical settlement.

I prefer cash settlement personally, most traders would. Physical settlement drives up the transaction cost and any way index fno would not be effected, they will continue to remain cash settled.

thanks capricorn and AW10