You can hold MCX contracts based on whether they are cash-settled or physically settled. For physically settled contracts, the holding period also depends on whether the contracts are for agricultural or non-agricultural commodities. The settlement type and the expiry dates can be found on this list (DOC).
Cash-settled contracts
You can hold cash-settled contracts until 11:30 PM on the expiry day (11:55 PM during daylight saving time from November to March).
Physically settled contracts
Zerodha squares off physically settled MCX contracts one day before the tender period starts to avoid physical delivery. The holding duration depends on the contract type:
Agricultural commodities
You can trade agricultural contracts until 12:30 PM one day before the tender period starts. After this time, Zerodha squares off your position.
Currently, Zerodha allows trading only in two agricultural contracts:
- Cardamom
- Mentha oil
Non-agricultural commodities
You can trade non-agricultural contracts until 7:00 PM if you are holding an NRML position one day before the tender period starts. Zerodha squares off your position after this time.
You have two options before 7:00 PM:
- Square off your position before 7:00 PM
- Convert to MIS (Intraday) to hold until the last 10 minutes of market close
If you convert to MIS, you can hold your position until 11:20 PM (11:45 PM during daylight saving time from November to March).
Zerodha sends you an email notification asking you to either close your position before 7:00 PM or convert to MIS if you want to hold until the last 10 minutes of expiry.
Note: You cannot convert agricultural commodity contracts (cardamom and mentha oil) to MIS one day before the tender period starts.