What is Expiry in Indian Stock Market

What is Expiry in Indian Stock Market?

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You probably must have come across the term “expiry” for medicines or food items, but some of you might be wondering, What is Expiry in Indian Stock Market? Well, here is your answer.

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What is Expiry in Indian Stock Market

What is Expiry?

There are 2 types of derivatives contracts

  • Futures
  • Options

Both these derivative contracts are monthly contracts, meaning a derivatives position can be carried daily for a month and at the end of the month the contract expires on a pre-decided day.

The day on which derivative contracts expire is called the “Expiry Day”. On this day the contract is settled at the closing price of the underlying. After they “expire” the contracts become invalid and cannot be enforced. In Indian Stock Market, the expiry date of Index and Stock derivative contracts is on the last Thursday of every month and in case that Thursday is a holiday then it will be one day earlier on Wednesday.

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