Experts say that due to this change, traders will have to change their trading strategy. The expiry days of derivative contracts are going to change. Soon the derivative deal on NSE will expire on Tuesday, while on BSE on Thursday. This means that there will be a lot of difference between the expiry days of both exchanges. The question is, what will be the effect of this? Will traders have to change their investment strategy in some way?
Trading strategy will have to be changed
This change will be effective from September this year. This change has happened on the orders of SEBI. The market regulator says that the expiry of equity derivatives should be only two days a week. Experts say that due to this change, traders will have to change their trading strategy. Chandan Tapadia of Motilal Oswal Financial Services said that it is beneficial for both exchanges.
Short Term Traders will be interested in NSE
He said that short -term traders will be interested in NSE, while positional traders will benefit more in BSE. It is important to note that the current schedule will be applicable to contracts ending on or before 31 August, 2025. Rohit Srivastava, the founder of Indiacharts, said that the end date plays a major role in the termination of derivative strategy. This option is particularly important for buyers and vendors.
Intrade Traders will benefit
He said that options buyers would like to get out by Friday to avoid the decline in the price at the end of the week. This increases the amount of day-business on Monday and Thursday. This structure is beneficial for intraday traders. The ‘Hero to Zero’ is also beneficial for those using the strategy. Physical traders will get more flexibility from the end of Thursday. They will be able to trade without worrying about the fall in the price at the end of the week.
The revenue of brokerage firms will not be affected
The effect of this change will be limited for BSE. Srivastava said that the amount of day-to-day day in NSE can increase. As far as brokers are concerned, their revenue may remain stable. Experts say that behind this change the purpose of BSE is to bring discipline and reduce betting on the day of expiry.