How to carry over Futures position

#1
Hi friends,
Please help me as to how to carry over the futures position to next month.
I have short position in MINIFTY-30 August. Now today is 29th, what will happen tomorrow. How my position will be carried over, or will it be squared off tomorrow??
If i want to keep my position, then what I have to do. My broker is ICICIDirect

thanks
regards
Srivastava
 
#2
Hi friends,
Please help me as to how to carry over the futures position to next month.
I have short position in MINIFTY-30 August. Now today is 29th, what will happen tomorrow. How my position will be carried over, or will it be squared off tomorrow??
If i want to keep my position, then what I have to do. My broker is ICICIDirect

thanks
regards
Srivastava
The situation which you are quoting is called Rollover.

Rollover sounds a technical term but it has a simple notion and according to it the only thing is that you liquidate [square off] your position in the current month contract and open the same directional trade in the next month contract.

So when you want to rollover short position in Minifty you will be required to square it off and then go short in Minifty again in the September series.
 
#3
As Rockyrobust said, it's simply closing the near month futures and opening fresh ones of the next month series. Below is the link from ICICIDirect FAQ - which is stating the same.

https://secure.icicidirect.com/customer/iClick2GainFAQ.asp

~
Sundar

Hi friends,
Please help me as to how to carry over the futures position to next month.
I have short position in MINIFTY-30 August. Now today is 29th, what will happen tomorrow. How my position will be carried over, or will it be squared off tomorrow??
If i want to keep my position, then what I have to do. My broker is ICICIDirect

thanks
regards
Srivastava
 
#4
Thanks Sunder and RockyRobust for the reply. Now if today, due to any problem (net disconnection, other engagements, no current etc.) I am unable to do the transaction of squaring off and taking new position, then what happens.

Regards..
Srivastava
 

dineshN

Well-Known Member
#5
Thanks Sunder and RockyRobust for the reply. Now if today, due to any problem (net disconnection, other engagements, no current etc.) I am unable to do the transaction of squaring off and taking new position, then what happens.

Regards..
Srivastava
Your August position will get squared off by the exchange at closing rates today.

With respect to rollover, it not necessarily done on the last day of the expiry. If you are sure and have decided to rollover, you should start looking for an opportunity to rollover from Monday of the expiry week. Invariably market falls in the expiry week (not a standard but...), so you will be able to short September Nifty at a higher rate and still holding Aug Nifty. Once market corrects, just square of Aug position.
For eg, today if you square off August and decide to short September, you will have to pay premium for September position, that means your short will be at a higher rate than what you sold August.