There are some inherent systems, which ensure the smooth functioning of the futures trading carried out at the exchange. One such system followed is the Futures Rolling Settlement.

Under this system, all trades outstanding at end of the day have to be settled, which means that the buyer has to make payments for securities purchased and seller has to deliver the securities sold.

In India, the futures exchange has adopted the T+5 settlement cycle, which means that a transaction entered into on Day 1 has to be settled on the Day 1 + 5 working days, when funds pay in or securities pay out takes place.

Internationally also, most developed countries follow rolling settlement system. For instance, USA and UK follow a T+3 system.

Another system that is in place in India is the weekly settlement cycle. In this case all transactions done during the week, that is Monday to Friday for the Stock Exchange, Mumbai (BSE) and Wednesday to Tuesday for the National Stock Exchange (NSE)) can be squared off on the last day of the cycle.

This means that a trader has a longer time frame to speculate. Only those transactions, which are outstanding at the end of the last trading day, are required to be settled by payments or deliveries.