Rolling over a contract refers to moving a futures position from a contract that’s about to end to a contract with a later expiration date. This is done by closing the current-month contract and opening a similar position in a different month’s contract.

Rollover is done to avoid the expiration of a futures contract and continue the market exposure into the next month. By shifting to a later contract, traders can maintain their market positions without having to close and reopen entirely new positions. This practice is common in futures trading to ensure continuity and avoid disruption in trading strategies. Options, however, do not have a rollover option as they have a fixed expiration date.

Generally, in the Indian F&O market segment, 3 monthly futures contracts are traded: the current month, the next month, and the following month. If you are carrying a Nifty futures contract for the current month and they are about to expire, then you can close the position in the current contract and switch it to the next month or the following month. Please note that the value of future contracts for next month and the following month will trade at a higher price due to the premium charged.

Note: As per SEBI guidelines, rollover of contracts in the ban period is not allowed. However, you can close your existing positions.