How a rollover works
Brokers and exchanges let you place both legs together as a calendar spread order, which fills the two at a net price and avoids being out of the market between the trades.
Why the next month costs more
Futures usually trade above the spot price by the cost of carrying the position, mainly interest. The next-month contract has more time to expiry, so it carries more cost.
In the example, with Nifty at 25,000 and an interest rate of 6.5%, the extra 28 days add about 125 points. Dividends, demand and supply can make the actual spread wider or narrower.
Rollover data
Around each monthly expiry, analysts track:
- Rollover percentage: the share of open interest in the expiring month that has moved to the next month. High rollovers suggest traders are keeping their positions.
- Rollover cost: the spread between the months as a percentage. A higher cost than usual can suggest strong demand for long positions.
These figures describe positioning and are often read alongside OI buildup, but they do not forecast the next month on their own.
Rolling options
Options are rolled by closing the current position and opening a new one in a later expiry, often at a different strike. For example, a seller of a weekly Nifty call can buy it back on expiry day and sell a call in the next week. Each roll is a new trade with its own premium and risk.
Rollovers and the F&O ban
You cannot open a new position in a stock that is in the F&O ban, so a stock futures position cannot be rolled while the stock is in the ban.
Related terms
Learn more
Frequently asked questions
What is rollover in futures?
Closing a futures position in the expiring month and opening the same position in the next month.
When should I roll over futures?
Usually in the last few days before expiry, when liquidity in the next month has picked up. Rolling too late risks thin markets on expiry day.
What is the rollover cost?
The price difference between the next-month and current-month contracts, which mostly reflects the cost of carry.
Do stock futures need to be rolled to avoid delivery?
Yes. Stock futures held to expiry are physically settled. Roll or close them before expiry if you do not want delivery.