I buy a stock future for july expiry. If i not sell it at the end of expiry what would happen with the future? If i want to carry it to next series what to do?
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If the futures is in profit it would be cash settled and profit would be deposited in your account. Similarly if it is in loss money would be debited from your account. This is similar to daily MTM settlement but instead this time it is final settlement.
Its best to close of the position earlier in order to avoid any unwarranted volatility on the expiry day.
In order to rollover you will have to close this position and open position in Aug expiry. Typically this is done within a week before the expiration. Please note if you open Aug expiry position without closing Jul position, you will be carrying two positions. July one would be cash settled on expiry day while you will be still holding Aug one post July expiry.
Check the following for Final Settlement process
http://www.nseindia.com/products/content/derivatives/equities/settlement_mechanism.htm
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Hi Pranab…regardless of weather you are in profit or loss, the futures contract is cash settled and auto squared off by exchanges. However because you choose not to do anything, you wont be charged brokerage or other applicable charges for this.
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If you don’t square-off futures, then it will not be rolled-over. It will be settled in cash. If you want to roll over, you have to square -off manually and then buy next month stock futures for that stock. There is no other way to roll-over.
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Automatically cash settled, on the day of contract expiry (last Thursday of the particular month). If you are in profit [money (contract buy value+profit amount) is credited in your account]. If you are in loss [money (loss amount) is debited in your account]. Hopefully, clarifies.
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