What is rollover in F&O trading? What is the commission charged for the same by NSE and BSE?

 In the context of derivatives trading, rollover refers to the process of extending the expiration date of a futures or options contract. This is done by closing out an existing position in a near-term contract and simultaneously opening a new position in a further-dated contract. The objective of rollover is to avoid taking delivery of the underlying asset and to maintain a position in the market without having to pay the full price of the asset.

The commission charged for rollover by the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) depends on the broker and the type of contract being rolled over. Brokers typically charge a small percentage of the total value of the contract as commission for rollover. The commission rate is usually disclosed in the broker's fee schedule and can vary depending on the volume of the trade and the type of contract.

It's important to note that rollover may not be suitable for all investors, and it's important to understand the risks and costs associated with rolling over a contract before making a decision. It's also recommended to consult with a financial advisor or a broker before making any decision.

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