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  • Important update on physical settlements of contracts with a March 2025 expiry

    As per a SEBI mandate, physical settlement is compulsory if a trader holds a position in any Stock F&O contracts on expiry date.

    What is Physical Settlement?

    In a Stock F&O contract, when there is an open position that has not been squared off by its expiry date, Physical Settlement takes place. This implies they have to physically give/take delivery of Stocks to settle the open transactions instead of settling them with cash.

    Examples of physical settlement:

    Futures

    Long positions of 1 lot of Reliance, 250 quantity at Rs. 2000 i.e. Rs. 5 lakh contract value
    F&O = 20% charges i.e. Rs. 1,00,000. This means, you are required to give Rs. 1 lakh, but if you decide to physically settle then you need to have a complete contract value of Rs. 5 lakhs.

    Short positions of 1 lot Reliance 250 quantity at Rs. 2000 i.e. Rs. 5 lakh contract value
    F&O = 20% charges i.e. Rs. 1,00,000. This means, you are required to give Rs. 1 lakh, but if you decide to physically settle then you need to have the holdings of 250 quantity of Reliance and Rs. 1 lakh margin money till expiry date.

    Options

    Long – 1 lot of Reliance, 250 quantity for strike price of Rs. 2000 Call (CE) Options.
    If the underlying price of Reliance is greater than the strike price of Rs. 2000, then the contract is said to be ITM (In-The-Money). If you wish to go for physical settlement, you need to maintain a free ledger balance of Rs 5 Lakh in your account, else physical settlement would not be done.

    Long – 1 lot of Reliance, 250 quantity for Strike price of Rs. 2000 Put (PE) Options.
    If the underlying price of Reliance is lesser than strike price of Rs. 2000, then the contract is said to be ITM (In-The-Money). If you wish to go for physical settlement, you need to provide the Stocks (shares) equal to the lot quantity positioned to be available in Demat account, else physical settlement would not be done.

    Please note — 

    – Short ITM PE options, treatment would be similar to Long ITM CE options.
    Free ledger balance equal to the contract value to be maintained.
    -Short ITM CE options, treatment would be similar to Long ITM PE options.
    Holdings shares of lot quantity positioned to be available in Demat account.

    What is the process for Physical Settlement on Upstox?
    To opt for physical settlement on Upstox, you need to provide your consent first and here are the details for the same:

    -To provide your consent for physical settlement of open Stock F&O contract(s) with March 2025 expiry visit the ‘Profile’ section on your Upstox account on our App / Web and give your consent from here before EOD on Tuesday, 25 March 2025.

    -Based on your consent, Upstox will evaluate whether your position qualifies for physical settlements and if there is sufficient  ledger balances / holdings (whichever applicable) is available.

    -Kindly, plan your trades keeping in mind that you will not be able to trade in fresh positions in the current March 2025 expiry F&O contracts from Wednesday, 26 March 2025 

    -Correspondingly, position conversion(s) on carry forward of any stock futures positions shall also not be permitted.

    What other impact could this have on your positions?
    Your position will automatically be squared-off on expiry day at 12:00 PM in case:

    -You have not provided your consent for physical settlement

    -You provided your consent for physical settlement and do not have Ledger Value (equal to contract value) / holdings available for the physical settlement of your positions.

    -In a case of funds / holdings not being available for all the open positions, we will execute square offs for all the positions. Thus no partial funds / holdings evaluation for the expiring positions will be considered by our team.

    What else to keep in mind?
    Delivery margins would be applicable as per Exchange norms on all the existing long ITM (In The Money) stock option positions in a staggered manner as explained below:

    -10% of delivery margins computed on expiry -4 days EOD (Friday)

    -25% of delivery margins computed on expiry -3 days EOD (Monday)

    -45% of delivery margins computed on expiry -2 days EOD (Tuesday)*

    -70% of delivery margins computed on expiry -1 day EOD (Wednesday)*

    -To avoid margin shortages, Upstox would be blocking such (above mentioned) delivery margins from Beginning of the Day (BOD) instead of End of the Day (EOD).

    -If the positions are not squared off for any reason (e.g: non-liquidity), then the contract would have to be settled physically and you would be liable to pay the entire amount of the settlement.

    * If you have opted for physical settlement, you would be required to fulfil the entire funds (contract value) / holdings requirement by EOD on Tuesday, 25 March 2025.

    In case of spread contracts, you are advised to provide margins for both the legs  since the risk of one leg square off by you anytime would result in physical settlement of the other leg.

    Brokerage in Physical settlement:

    Since there is a substantial increase in effort and risk to settle these F&O positions resulting in physical delivery, if F&O positions result in physical delivery brokerage will be 0.25% of the physical settled value. For all the netted off positions brokerage will be 0.1% of the physical settled value. All physical settled contracts (Futures & Options) will also carry an applicable Exchange charge.

    And that’s all. Keep a watchful eye on this page for more updates from Upstox!

  • NATURALGAS & NATGASMINI Monthly Options Expiry Trading Today

    Please note that all ITM & ATM NATURALGAS and NATGASMINI option contracts expiring today, 24th March 2025, will be converted into futures contracts. You can create fresh positions only until 9 PM today. To avoid the square-off of your positions, please ensure you maintain sufficient margin for the futures contracts before 9 PM today.

  • Important update on physical settlements of contracts with a February 2025 expiry

    As per a SEBI mandate, physical settlement is compulsory if a trader holds a position in any Stock F&O contracts on expiry date.

     

    What is Physical Settlement?

    In a Stock F&O contract, when there is an open position that has not been squared off by its expiry date, Physical Settlement takes place. This implies they have to physically give/take delivery of Stocks to settle the open transactions instead of settling them with cash.

    Examples of physical settlement:

    Futures

    Long positions of 1 lot of Reliance, 250 quantity at Rs. 2000 i.e. Rs. 5 lakh contract value

    F&O = 20% charges i.e. Rs. 1,00,000. This means, you are required to give Rs. 1 lakh, but if you decide to physically settle then you need to have a complete contract value of Rs. 5 lakhs.

    Short positions of 1 lot Reliance 250 quantity at Rs. 2000 i.e. Rs. 5 lakh contract value

    F&O = 20% charges i.e. Rs. 1,00,000. This means, you are required to give Rs. 1 lakh, but if you decide to physically settle then you need to have the holdings of 250 quantity of Reliance and Rs. 1 lakh margin money till expiry date.

    Options

    Long – 1 lot of Reliance, 250 quantity for strike price of Rs. 2000 Call (CE) Options.

    If the underlying price of Reliance is greater than the strike price of Rs. 2000, then the contract is said to be ITM (In-The-Money). If you wish to go for physical settlement, you need to maintain a free ledger balance of Rs 5 Lakh in your account, else physical settlement would not be done.

    Long – 1 lot of Reliance, 250 quantity for Strike price of Rs. 2000 Put (PE) Options.

    If the underlying price of Reliance is lesser than strike price of Rs. 2000, then the contract is said to be ITM (In-The-Money). If you wish to go for physical settlement, you need to provide the Stocks (shares) equal to the lot quantity positioned to be available in Demat account, else physical settlement would not be done.

    Please note — 

    -Short ITM PE options, treatment would be similar to Long ITM CE options.
    Free ledger balance equal to the contract value to be maintained.

    -Short ITM CE options, treatment would be similar to Long ITM PE options.
    Holdings shares of lot quantity positioned to be available in Demat account.


    What is the process for Physical Settlement on Upstox?
    To opt for physical settlement on Upstox, you need to provide your consent first and here are the details for the same:

     

    -To provide your consent for physical settlement of open Stock F&O contract(s) with February 2025 expiry visit the ‘Profile’ section on your Upstox account on our App / Web and give your consent from here before EOD on Monday, 24 February 2025.

    -Based on your consent, Upstox will evaluate whether your position qualifies for physical settlements and if there is sufficient  ledger balances / holdings (whichever applicable) is available.

    -Kindly, plan your trades keeping in mind that you will not be able to trade in fresh positions in the current February 2025 expiry F&O contracts from Tuesday, 25 February 2025 onwards. 

    -Correspondingly, position conversion(s) on carry forward of any stock futures positions shall also not be permitted.

    What other impact could this have on your positions?
    Your position will automatically be squared-off on expiry day at 12:00 PM in case:

    -You have not provided your consent for physical settlement

    -You provided your consent for physical settlement and do not have Ledger Value (equal to contract value) / holdings available for the physical settlement of your positions.

    -In a case of funds / holdings not being available for all the open positions, we will execute square offs for all the positions. Thus no partial funds / holdings evaluation for the expiring positions will be considered by our team.

    What else to keep in mind?
    Delivery margins would be applicable as per Exchange norms on all the existing long ITM (In The Money) stock option positions in a staggered manner as explained below:

    -10% of delivery margins computed on expiry -4 days EOD (Friday)

    -25% of delivery margins computed on expiry -3 days EOD (Monday)

    -45% of delivery margins computed on expiry -2 days EOD (Tuesday)*

    -70% of delivery margins computed on expiry -1 day EOD (Wednesday)*

    -To avoid margin shortages, Upstox would be blocking such (above mentioned) delivery margins from Beginning of the Day (BOD) instead of End of the Day (EOD).

    -If the positions are not squared off for any reason (e.g: non-liquidity), then the contract would have to be settled physically and you would be liable to pay the entire amount of the settlement.

    * If you have opted for physical settlement, you would be required to fulfil the entire funds (contract value) / holdings requirement by EOD on Monday, 24 February 2025.

    In case of spread contracts, you are advised to provide margins for both the legs  since the risk of one leg square off by you anytime would result in physical settlement of the other leg.

    Brokerage in Physical settlement:

    Since there is a substantial increase in effort and risk to settle these F&O positions resulting in physical delivery, if F&O positions result in physical delivery brokerage will be 0.25% of the physical settled value. For all the netted off positions brokerage will be 0.1% of the physical settled value. All physical settled contracts (Futures & Options) will also carry an applicable Exchange charge.

    And that’s all. Keep a watchful eye on this page for more updates from Upstox!

  • CRUDEOIL & CRUDEOILM Monthly Options Expiry Trading Today

    Please note that all ITM & ATM CrudeOil and CrudeOil Mini option contracts expiring today, 17th March 2025, will be converted into futures contracts. You can create fresh positions only until 9 PM today.

    To avoid the square-off of your positions, please ensure you maintain sufficient margin for the futures contracts before 9 PM today.

  • NSE Update: F&O Expiry Moving to Monday!

    Starting 4 April 2025, NSE is shifting its F&O expiry schedule from Thursdays to Mondays.

    📅 New Expiry Days:
    ✔ NIFTY Weekly Expiry → Every Monday
    ✔ NIFTY, BANKNIFTY & Stock F&O (Monthly & Quarterly) Expiry → Last Monday of the Month

    This change could impact your trading strategy—so plan your trades accordingly!

  • Revision in expiry dates of commodity futures contracts expiring on 31 March 2025

    The MCX has revised expiry dates of commodity futures contracts expiring on Monday, 31 March 2025.

    This change is due to a trading holiday on Monday, 31 March 2025, in observance of Eid-Ul-Fitr (Ramzan Eid).

    These contracts will now expire on Friday, 28 March 2025, instead of the originally scheduled Monday, 31 March 2025.

    Keep in mind:

    Although the Market Watch Screen will continue to show the existing Expiry Date of 31 March 2025, trading in these commodity contracts will only be available till Friday, 28 March 2025.

    Please refer to the table to check the revised expiry dates & tender periods:

    To learn more, refer to the MCX circular.

  • Revision in expiry dates of Zinc & Copper Options contracts expiring on 24 March 2025

    Due to a trading holiday on 31 March 2025 (Eid-Ul-Fitr), the expiry dates for Zinc and Copper Options contracts have been revised.

    Zinc Options expiry date revised to Fri, 21 Mar ’25 from Mon, 24 Mar ’25.
    Copper Options expiry date revised to Fri, 21 Mar ’25 from Mon, 24 Mar ’25.

    Note: The Market Watch Screen will continue to show 24 Mar ’25 as the expiry date, but trading will end on 21 Mar ’25.

    To learn more, refer to the MCX circular.

    Please refer to the table to check the revised expiry dates for Futures & Options contracts:

  • Important update on physical settlements of contracts with a January 2025 expiry

    As per a SEBI mandate, physical settlement is compulsory if a trader holds a position in any Stock F&O contracts on the expiry date.

    What is Physical Settlement?

    In a Stock F&O contract, when there is an open position that has not been squared off by its expiry date, Physical Settlement takes place. This implies they have to physically give/take delivery of Stocks to settle the open transactions instead of settling them with cash.

    Examples of physical settlement:

    Futures

    Long positions of 1 lot of Reliance, 250 quantity at Rs. 2000 i.e. Rs. 5 lakh contract value

    F&O = 20% charges i.e. Rs. 1,00,000. This means you are required to give Rs. 1 lakh, but if you decide to physically settle then you need to have a complete contract value of Rs. 5 lakh.

    Short positions of 1 lot Reliance 250 quantity at Rs. 2000 i.e. Rs. 5 lakh contract value

    F&O = 20% charges i.e. Rs. 1,00,000. This means you are required to give Rs. 1 lakh, but if you decide to physically settle then you need to have the holdings of 250 quantities of Reliance and Rs. 1 lakh margin money till the expiry date.

    Options

    Long – 1 lot of Reliance, 250 quantity for a strike price of Rs. 2000 Call (CE) Options.

    If the underlying price of Reliance is greater than the strike price of Rs. 2000, then the contract is said to be ITM (In-The-Money). If you wish to go for physical settlement, you need to maintain a free ledger balance of Rs 5 Lakh in your account, else physical settlement would not be done.

    Long – 1 lot of Reliance, 250 quantity for Strike price of Rs. 2000 Put (PE) Options.

    If the underlying price of Reliance is lesser than the strike price of Rs. 2000, then the contract is said to be ITM (In-The-Money). If you wish to go for physical settlement, you need to provide the Stocks (shares) equal to the lot quantity positioned to be available in the Demat account, else physical settlement would not be done.

    Please note — 

    – Short ITM PE options, treatment would be similar to Long ITM CE options.
    Free ledger balance equal to the contract value to be maintained.

    – Short ITM CE options, treatment would be similar to Long ITM PE options.
    Holdings shares of lot quantity need to be available in Demat account.


    What is the process for Physical Settlement on Upstox?
    To opt for physical settlement on Upstox, you need to provide your consent first and here are the details for the same:

    – To provide your consent for physical settlement of open Stock F&O contract(s) with January  2025 expiry visit the ‘Profile’ section on your Upstox account on our App / Web and give your consent from here before EOD on Tuesday, 28 January 2025.

    – Based on your consent, Upstox will evaluate whether your position qualifies for physical settlements and if there is sufficient ledger balances / holdings (whichever applicable) are available.

    – Kindly, plan your trades keeping in mind that you will not be able to trade in fresh positions in the current January 2025 expiry F&O contracts from Wednesday, 29 January 2025 onwards. 

    – Correspondingly, position conversion(s) on carry forward of any stock futures positions shall also not be permitted.

    What other impact could this have on your positions?
    Your position will automatically be squared off on expiry day at 12:00 PM in case:

    – You have not provided your consent for physical settlement

    – You provided your consent for physical settlement and do not have Ledger Value (equal to contract value) / holdings available for the physical settlement of your positions.

    – In case of funds/holdings not being available for all the open positions, we will execute square-offs for all the positions. Thus no partial funds/holdings evaluation for the expiring positions will be considered by our team.

    What else to keep in mind?
    Delivery margins would be applicable as per Exchange norms on all the existing long ITM (In The Money) stock option positions in a staggered manner as explained below:

    – 10% of delivery margins computed on expiry -4 days EOD (Friday)

    – 25% of delivery margins computed on expiry -3 days EOD (Monday)

    – 45% of delivery margins computed on expiry -2 days EOD (Tuesday)*

    – 70% of delivery margins computed on expiry -1 day EOD (Wednesday)*

    – To avoid margin shortages, Upstox would be blocking such (above-mentioned) delivery margins from the Beginning of the Day (BOD) instead of the End of the Day (EOD).

    – If the positions are not squared off for any reason (e.g.: non-liquidity), then the contract would have to be settled physically and you would be liable to pay the entire amount of the settlement.

    *If you have opted for physical settlement, you would be required to fulfil the entire funds (contract value) / holdings requirement  by  EOD on Tuesday, 28 January 2025.

    In the case of spread contracts, you are advised to provide margins for both legs since the risk of one leg being squared off by you at any time would result in the physical settlement of the other leg.

    Brokerage in Physical settlement:

    Since there is a substantial increase in effort and risk to settle these F&O positions resulting in physical delivery, if F&O positions result in physical delivery brokerage will be 0.25% of the physical settled value. For all the netted-off positions brokerage will be 0.1% of the physical settled value. All physically settled contracts (Futures & Options) will also carry an applicable Exchange charge.

    And that’s all. Keep a watchful eye on this page for more updates from Upstox!

  • Revision in index F&O expiry days

    As per a recent Exchange circular, the expiry days for F&O index contracts have been revised. Starting January 2025:
    – NSE index F&O contracts will expire on the last Thursday of each month.
    – BSE index F&O contracts will expire on the last Tuesday of each month.

    Here’s a detailed table for your reference:

    Keep in mind
    – There is no change in expiry day for NIFTY monthly, weekly, quarterly & half yearly F&O contracts. They will continue to expire on Thursdays.
    – There will be no change in the existing SENSEX weekly F&O contracts expiring on 3 January 2025.
    – New F&O BSE Index contracts placed after 1 January 2025, will have an expiry day of Tuesday

    To learn more, you can refer to the: NSE circular | BSE circular

  • Important update on physical settlements of contracts with a December 2024 expiry

    As per a SEBI mandate, physical settlement is compulsory if a trader holds a position in any Stock F&O contracts on the expiry date.

    What is Physical Settlement?

    In a Stock F&O contract, when there is an open position that has not been squared off by its expiry date, Physical Settlement takes place. This implies they have to physically give/take delivery of Stocks to settle the open transactions instead of settling them with cash.

    Examples of physical settlement:

    Futures

    Long positions of 1 lot of Reliance, 250 quantity at Rs. 2000 i.e. Rs. 5 lakh contract value

    F&O = 20% charges i.e. Rs. 1,00,000. This means you are required to give Rs. 1 lakh, but if you decide to physically settle then you need to have a complete contract value of Rs. 5 lakh.

    Short positions of 1 lot Reliance 250 quantity at Rs. 2000 i.e. Rs. 5 lakh contract value

    F&O = 20% charges i.e. Rs. 1,00,000. This means you are required to give Rs. 1 lakh, but if you decide to physically settle then you need to have the holdings of 250 quantities of Reliance and Rs. 1 lakh margin money till the expiry date.

    Options

    Long – 1 lot of Reliance, 250 quantity for a strike price of Rs. 2000 Call (CE) Options.

    If the underlying price of Reliance is greater than the strike price of Rs. 2000, then the contract is said to be ITM (In-The-Money). If you wish to go for physical settlement, you need to maintain a free ledger balance of Rs 5 Lakh in your account, else physical settlement would not be done.

    Long – 1 lot of Reliance, 250 quantity for Strike price of Rs. 2000 Put (PE) Options.

    If the underlying price of Reliance is lesser than the strike price of Rs. 2000, then the contract is said to be ITM (In-The-Money). If you wish to go for physical settlement, you need to provide the Stocks (shares) equal to the lot quantity positioned to be available in the Demat account, else physical settlement would not be done.

    Please note — 

    – Short ITM PE options, treatment would be similar to Long ITM CE options.
    Free ledger balance equal to the contract value to be maintained.

    – Short ITM CE options, treatment would be similar to Long ITM PE options.
    Holdings shares of lot quantity need to be available in Demat account.


    What is the process for Physical Settlement on Upstox?
    To opt for physical settlement on Upstox, you need to provide your consent first and here are the details for the same:

    – To provide your consent for physical settlement of open Stock F&O contract(s) with December 2024 expiry visit the ‘Profile’ section on your Upstox account on our App / Web and give your consent from here before EOD on Monday, 23 December 2024.

    – Based on your consent, Upstox will evaluate whether your position qualifies for physical settlements and if there is sufficient ledger balances / holdings (whichever applicable) are available.

    – Kindly, plan your trades keeping in mind that you will not be able to trade in fresh positions in the current November 2024 expiry F&O contracts from Tuesday, 24 December 2024 onwards. 

    – Correspondingly, position conversion(s) on carry forward of any stock futures positions shall also not be permitted.

    What other impact could this have on your positions?
    Your position will automatically be squared off on expiry day at 12:00 PM in case:

    – You have not provided your consent for physical settlement

    – You provided your consent for physical settlement and do not have Ledger Value (equal to contract value) / holdings available for the physical settlement of your positions.

    – In case of funds/holdings not being available for all the open positions, we will execute square-offs for all the positions. Thus no partial funds/holdings evaluation for the expiring positions will be considered by our team.

    What else to keep in mind?
    Delivery margins would be applicable as per Exchange norms on all the existing long ITM (In The Money) stock option positions in a staggered manner as explained below:

    – 10% of delivery margins computed on expiry -4 days EOD (Friday)

    – 25% of delivery margins computed on expiry -3 days EOD (Monday)

    – 45% of delivery margins computed on expiry -2 days EOD (Tuesday)*

    – 70% of delivery margins computed on expiry -1 day EOD (Wednesday)*

    – To avoid margin shortages, Upstox would be blocking such (above-mentioned) delivery margins from the Beginning of the Day (BOD) instead of the End of the Day (EOD).

    – If the positions are not squared off for any reason (e.g.: non-liquidity), then the contract would have to be settled physically and you would be liable to pay the entire amount of the settlement.

    *If you have opted for physical settlement, you would be required to fulfil the entire funds (contract value) / holdings requirement  by  EOD on Monday, 23 December 2024.

    In the case of spread contracts, you are advised to provide margins for both legs since the risk of one leg being squared off by you at any time would result in the physical settlement of the other leg.

    Brokerage in Physical settlement:

    Since there is a substantial increase in effort and risk to settle these F&O positions resulting in physical delivery, if F&O positions result in physical delivery brokerage will be 0.25% of the physical settled value. For all the netted-off positions brokerage will be 0.1% of the physical settled value. All physically settled contracts (Futures & Options) will also carry an applicable Exchange charge.

    And that’s all. Keep a watchful eye on this page for more updates from Upstox!