What are the Risks of Positional Trading Staggered Physical Delivery Commodities?


Can someone please provide the insights on the Risks of Positional Trading Staggered Physical Delivery Commodities like:


Thank You!

For staggered delivery contracts once the tender period starts (Mostly 5 days before expiry date) positions will be marked for physical delivery randomly.
In Zerodha fresh trades are blocked once the tender period starts for staggered delivery contracts and all the existing position will be squared off one day before the tender period. You can roll over to next month contract if you want.
So there is no risk in trading the staggered delivery contracts in Zerodha as we are not giving physical delivery.


Who does this ?
Who is marking randomly ?

The exchange will mark the physical delivery. The random assignment will happen only during tender period days. On the expiry day, all the positions will be physically settled compulsorily.

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How will i come to know whether my position is marked randomly or not ?
If marked , can i exit before the expiry?
If not marked ; then no need of physical delivery?
Pls reply …

Thank You Ragavendran,

So, if I take a positional trade on any of those commodities, and squared of my positions 5 or 6 days before the expiry, then there won’t be any risk of staggered delivery, is that correct?

In staggered delivery explanation it is mentioned that

“The exchange can mark any of the open contracts as delivery during the delivery intention period. Even if the contract is closed after your contract is marked as delivery, the delivery obligation will remain.

So, can you explain that!

Thank You!


For example, you have one lot of Alumini future, which is open during the tender period, there is a possibility that exchange may mark the position as physical delivery even if you close the position before market closing time.

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Ok, so the " delivery intention period" = tender period (i.e. 5 days before expiry date)! I hope I got it now! :slightly_smiling_face:

Thank you very much for clearing my doubt!

Any reply?

pls reply

Hello HSL,

I think you will receive an email and it will also reflect in your kite position if it marked as staggered delivery! I am not sure what happens after it is marked for delivery. And If not marked ; then no need of physical delivery!

Just make sure that you exit the position 5 days before expiry date in order to avoid the staggered delivery!

The broker will receive the notification for physical delivery, which will be notified to the client. If it is marked even if you close the position physical delivery obligation will remain.
On the expiry day all the positions are compulsorily physically settled.

this rule is harsh :frowning:

Try to exit the position 5 days before expiry date in order to avoid the delivery mess!

Try to refer the zerodha support portal page before asking any questions here in forum,