Futures on WebNotes

How to roll over an F&O position on Zerodha

Tue, 12 May 2026 00:00:00 +0000

Rolling over an F&O position means closing the expiring near-month contract and simultaneously (or near-simultaneously) opening an equivalent position in the next-month contract, thereby maintaining continuous market exposure beyond the current contract’s expiry without triggering physical settlement or forced close-out.

For context on F&O segment operations see F&O segment on Zerodha and How to trade futures on Kite (first time).

When rollovers are necessary

NSE and BSE list F&O contracts for three monthly expiry cycles (current month, next month, and the month after that). Each contract expires on the last Thursday of its month. On expiry day, the contract settles: futures contracts settle to the final settlement price (the closing spot price of the underlying), and options contracts settle to their intrinsic value.

How to trade futures on Kite (first time)

Tue, 12 May 2026 00:00:00 +0000

This guide walks through placing a futures trade on Kite for the first time. Futures are standardised exchange-traded contracts to buy or sell an underlying asset at a fixed price on a specific expiry date. On Indian exchanges, equity futures are settled daily on a mark-to-market basis and finally settled (cash or physical) on expiry. This guide covers the mechanics of executing the trade; for the regulatory and margin framework see F&O segment on Zerodha.

How to use collateral margin for F&O on Zerodha

Tue, 12 May 2026 00:00:00 +0000

After pledging securities and generating collateral margin on Zerodha, the collateral margin is ready for use in futures and options positions without any additional configuration. Kite automatically draws from the combined pool of cash and collateral when you place F&O orders. The critical constraint is SEBI’s rule that at least 50% of the total margin requirement must be in cash or cash equivalents. Understanding how to track and manage this split is the primary skill required to trade F&O on collateral efficiently.

F&O segment on Zerodha

Mon, 11 May 2026 00:00:00 +0000

The Futures and Options (F&O) segment on Zerodha covers exchange-traded equity derivatives on the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE). This segment includes index futures, index options, stock futures, and stock options on SEBI-approved underlying securities. Zerodha is among India’s largest F&O brokers by volume, with the segment accounting for a substantial share of its brokerage revenue despite the flat-fee model.

All F&O contracts in India are cash-settled, meaning no physical delivery of shares occurs except in the case of stock futures and stock options contracts in their expiry month, which were mandatorily moved to physical settlement by SEBI in a phased manner beginning in 2018.