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Expiry date

The expiry date for derivatives is the last date on which the derivative is valid. After that time, the contract has expired.

  • Depending on the type of derivative, the expiry date can result in different outcomes.

  • Option owners can choose to exercise the option or let it expire worthless.

  • Futures contract owners can opt to roll over the contract to a future date or close their position and take delivery of the asset or commodity.

Types of Expiry

The derivative contract is successfully settled among the buyer and seller on the expiry date. The settlement can occur in any of the following ways:

Physical delivery

When the actual asset under a contract is physically delivered to the buyer, the seller of the contract gives the commodity to the buyer, who pays the entire price for it.

Cash settlement

It is the settlement of the shortfall between the current and derivative prices using funds rather than the actual asset. In India, stock derivatives are normally settled through money.

NSE F&O expiry date

Monthly options contracts of Stocks, bank nifty & Nifty50 expire on the final Thursday of the month and weekly options contracts expire on each Thursday of the week. Contracts expire on the preceding trading day if last Thursday is a business holiday.

What happens on F&O expiry day?

Contracts are adjudicated on the day they expire. You can do this in any one of the ways i.e.either buy another contract that eliminates your current one, or pay off in cash.

Futures and options expiry dates in India

Nifty Futures and Options contracts expire on the last Thursday of every month. Contract expires on the prior trading day if last Thursday is a business holiday.

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