Stock Futures Positions Rollovers

Download Tax Saving Mutual Fund Application Forms

Invest In Tax Saving Mutual Funds Online

Buy Gold Mutual Funds

Leave a missed Call on

94 8300 8300

 



What Is A Rollover?

Rollover involves carrying forward of futures positions from one series, which is nearing expiry date, to the next one. On expiry, traders can either let a position lapse or enter into a similar contract expiring at a future date. Rollovers happen only in futures and not in options.

How Are Contracts Rolled Over In India? How Does It Work?

Equity derivatives contracts in India are settled on the last Thursday of every month (if Thursday is a holiday, the settlement happens on a Wednesday). While rollovers are done till the close of trading hours on that day, a chunk of the rollovers begin a week before expiry. Positions are rolled over to the next month through a spread window on the trading terminal. For instance, if a trader holds one futures contract of Nifty expiring in June, he would enter the `carry-forward this position to June' by keying in the spread at which he desires to rollover the positions to July. The spread window has made it easier for traders to rollover, which was a two-step process earlier.

How To Interpret Rollovers?

Rollover is expressed as a percentage of total positions. There are no benchmarks for rollovers but they are compared on the basis of historical data, especially the trailing three-month average.

Rollover is an indicator of traders' willingness to carry forward the bets on the market. But, the figures will not tell you in which direction traders have bet. On most occasions, lower-than average rollovers signal uncertainty while higher rollovers show that sentiment is strong. Hypothetically, if rollover in Nifty futures from May series to June is at 70% and three-month average is 65%, it means traders are more convinced about their views on the market and are willing to build more positions.

However, at times, rollover trends can be misleading. For instance, 70% roll over may have taken place at a lower base of open interest -number of outstanding positions -while the average of 65% rolls would have happened at a relatively higher open interest base. Savvy traders also analyse rollover trends on the basis of rollover cost. Usually, high rollover costs signal that the mood is upbeat in the market.

For further information contact Prajna Capital on 94 8300 8300 by leaving a missed call

Leave a missed Call on 94 8300 8300

Leave your comment with mail ID and we will answer them

OR

You can write back to us at

PrajnaCapital [at] Gmail [dot] Com

---------------------------------------------

Invest Mutual Funds Online

Invest Any Mutual Fund Online

Download Mutual Fund Application Forms from all AMCs

Download Mutual Any Fund Application Forms

---------------------------------------------

Best Performing Mutual Funds

1. Largecap Funds Invest Online
1. DSP BlackRock Top 100 Fund
2. ICICI Prudential Focused Blue Chip Fund
3. Franklin India Bluechip
4. ICICI Prudential Top 100 Fund

B. Large and Midcap Funds Invest Online

1. ICICI Prudential Dynamic Plan
2. HDFC Top 200 Fund
3. UTI Dividend Yield Fund
4. Birla Sun Life Front Line Equity Fund
5. Franklin India Prima

C. Mid and SmallCap Funds Invest Online

1. Reliance Equity Opportunities Fund
2. DSP BlackRock Small & Midcap Fund
3. Sundaram Select Midcap
4. IDFC Premier Equity Fund
5. Birla Sun Life Dividend Yield Plus
6. SBI Emerging Businesses Fund
7. HDFC Mid-Cap Opportunities Fund
8. ICICI Prudential Discovery Fund

D. Small and MicroCap Funds Invest Online

1. DSP BlackRock MicroCap Fund
2. Franklin India Smaller Companies

E. Sector Funds Invest Online

1. Reliance Banking Fund
2. Reliance Banking Fund
3. ICICI Prudential Banking and Financial Services Fund

F. Tax Saver Mutual Funds Invest Online

1. ICICI Prudential Tax Plan

2. HDFC Taxsaver

3. DSP BlackRock Tax Saver Fund
4. Reliance Tax Saver (ELSS) Fund

G. Gold Mutual Funds Invest Online

1. Relaince Gold Savings Fund
2. ICICI Prudential Regular Gold Savings Fund
3. HDFC Gold Fund
4. Birla Sun Life Gold

H. International funds Invest Online

1. Birla Sun Life International Equity Plan A

2. DSP BlackRock US Flexible Equity

3. FT India Feeder Franklin US Opportunities

4. ICICI Prudential US Bluechip Equity

5. Motilal Oswal MOSt Shares NASDAQ-100 ETF