Futures and Options contracts have a maximum of 3-month trading cycle -the near month (one), the next month (two) and the far month (three), except for the Long dated Options contracts. New contracts are introduced on the trading day following the expiry of the near month contracts. The new contracts are introduced for a three month duration. This way, at any point in time, there will be 3 contracts available for trading in the market (for each security) i.e., one near month, one mid month and one far month duration
respectively. For example on January 26,2008 there would be three month contracts i.e. Contracts expiring on January 31,2008,
February 28, 2008 and March 27, 2008. On expiration date i.e January 31,2008, new contracts having maturity of April 24,2008 would be introduced for trading.