Rollover in F&O at Zerodha

Zerodha
1

Does Zerodha has an option of Rollover in F&O as I want to carry forward the position to next month without squaring off the current months position? I have spoken to customer care according to them currently they don’t have

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2

We have to manually close the current month contract and take next month contract in two seperate orders to have a rollover. I remember I had once suggested for rollover order type to Zerodha. Thereby it will automatically close the current month position and take next month position and hence position will be rolled over with single click. But it seems they didnt like the idea. :slight_smile:

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3

Hi, thanks for your reply!
By manually closing do you mean squaring off the current months position?

4

Yes, squering off current month position and creating next month position is called as taking roll over.

5

I think squaring off will invite the loss (as Spot price is lower than Buying Price). But in other broking houses one can pay the roll over cost for the current months contract and can continue with the same Buying price for next month contract, Only contracts changes not the buying price. I am not sure for this facility in Zerodha.

6

I really doubt this facility is available anywhere. But if it is there, Cost will still be same because the rollover cost you have mentioned is same as the difference between current month fut price and next month fut price.

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7

Let’s say I have a position of march at a buying price of 300 and spot is 290. I would prefer to pay a rollover cost which would normally be around INR 1-2 depending on lot and script.

8

So your Mar buying price was 300
Spot price is 290
So Mar fut would be around 291 (assuming we are near mar expiry)
You are already in loss of 9 rs
April fut could be trading at 293 ie 3 rs premium

So when you sell Mar fut at 291 and buy Apr fut at 293. The difference of 2 rs that you are losing is rollover cost for you.

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9

ok great explanation. thanks
So I will only incur a loss of 2 rs(roll over) only OR 9+2 ?

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10

Rs 9 loss you have already had. So that is your trading loss. Apart from that you will bear additional loss of 2 rs for continuing your position with new expiry.
It is exactly like your same contract that you bought at 300, you sold it at 291 and bought at 293 again.

2 Likes
11

Thanks bro…:smiley:

12

Hi ,
I got your point , I would like to understand below example

Requirement : if I have bought one option with premium 100rs , now price is at 91 on last day of contract , I would like to carry forward the same for next month , like my buying price is 100 and current price as it opens in new contract , means buying price 100 and current price is next month opening price , for this I can pay some penalty charge of .1 or .2 rs per stock like if lot is 1000 then 100 or 200rs 1 time to carry forward the contract

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13

Nobody has as its a different contract rolling over only means booking either loss or profit and taking same position in the next one.

14

Rolling a FNO position in Futures means closing the current month position and opening the same position (Long/Short) with the same number of lots in the next month.

If the platform you are trading in allows you to roll in one click the benefit is that you can accurately estimate the roll cost. If you monitor the Futures trading in the last few days of expiry, the rollover cost can fluctuate a lot. If you are trading large positions (50, 100 lots) the cost of rollover can be significant.

There are platforms in the US that allow you to put a limit rollover order in which you set the rollover cost as the “limit factor”. For example: Oct Futures are at 10200 and Nov Futures are trading at 10230. You can set limit as 20 points.

So the trade will rollover when the spread between Oct-Nov reduces to 20 points. That way you have reduced your rollover cost.

There are platforms in the US that allow you to similarly roll-over Options as well.

This is something that ZeroDha needs to support

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15

Is it true ? we can not rollover any future contract more than 3 series.

16

Did u read the posts above?

When u close current and open new, then how can there be a limit?

17

every time i make/take a trade ; i have to bear the following

Regulatory Charges

|STT Total|||Transaction Charges|||GST || ETC|||SEBI Charges|||Stamp Duty|| etc .

my problem and query is :

i want to rollover NIFTY

MARCH Expiry to APRIL Expiry .

Now . if i Exit/Square-off the March Contract and take a fresh/new entry in the April Contract ; i have to bear and pay all those above Regulatory Charges double twice the time , which ultimately add to my cost of trade !

is there any solution to this problem ?