December 2025 F&O Monthly Expiry

F&O monthly expiry refers to the last trading day of the month for futures and options (derivatives) contracts. Here are some insights on the same below.

What is F&O Monthly Expiry?

F&O monthly expiry refers to the last trading day in the month for derivative contracts. Derivatives expiry in India is usually on the last Thursday of the month. This is the date on which these contracts end. Traders thus have to either close their position (often with cash)/settle or execute (take delivery for futures) the agreement to sell or buy the underlying asset. It is a vital deadline that leads to higher volatility due to the adjustments of positions. 

If the last Thursday is a holiday, then it is the previous Wednesday. Traders may square off or close positions to avoid automatic expiry or settlements. They can also roll over by closing the present contract and opening a new one for the coming month (only for futures). Another option is exercising the right to sell or buy, or fulfilling obligations under futures contracts.

Expiry Day Rule (Index + Stocks + Commodity)

New rules have been notified for the options expiry date and the futures expiry date. The BSE and NSE have notified changes to the expiry dates of index and stock derivatives contracts, effective from September 01, 2025. The expiry date was unchanged for contracts expiring on/before August 31, 2025.  

NSE: 

For monthly contracts, the revised expiry day is the last Tuesday of the expiry month (in place of the last Thursday) for NIFY, BANKNIFTY, FINNIFTY, MIDCPNIFTY, NIFTYNXT50 and single stocks. F&O contracts for April 2025 were shifted to the last Monday, as per NSE guidelines. 

BSE: 

For monthly contracts, the expiry date was previously the last Tuesday of each month, and the BSE has now revised it to the last Thursday of the expiry month. This applies to the Sensex 50, Bankex, and Sensex. 

F&O Expiry for the Month of December 2025

Here’s the expiry date calendar for key futures and options in the month of December 2025:

Why Monthly Expiry Creates Volatility

The F&O monthly expiry is a crucial date, as it can significantly affect stock prices. This may also lead to higher market volatility, known as the expiry-day effect. In this scenario, prices may become more unpredictable due to the closing of positions and higher trading volumes. As the expiry date approaches, investors and traders face the choice of rolling over positions or closing them. This leads to significant trading activity, with participants rushing to tweak positions before contract expiry. 

Higher trading volumes on the day of the expiry may lead to price fluctuations that deviate from regular market trends. Traders may have to accept unfavourable rates while closing out positions. Those rolling over positions may lead to short-term price distortions when they enter new contracts. Traders holding positions for a long time may also liquidate holdings, thereby putting more pressure on stock prices. 

Commodity-Wise Expiry Examples

The expiry dates for F&O commodity contracts may vary depending on the exchange (NCDEX or MCX) and the commodity in question. Unlike equity F&O, which usually expires on the last Thursday of the month, commodity contracts have different schedules. Here are a few examples: 

• Gold (Futures) - 5th of the expiry month or the preceding day in case the 5th is a holiday. For example, April 4, 2025, was the expiry date for the Gold April 2025 futures contract. 
• Crude Oil (Futures) - 19th or 20th of the expiry month. An example is MCX Crude Oil options contracts expiring in October 2025, which devolved into futures contracts around October 16, 2025. 
• Agricultural Commodities (Futures)- Usually expire on the last day of the expiry month.
• Commodities Options- Usually expire a few days before the underlying futures contract to enable settlement processes (8 business days for gold options and two business days for natural gas options).