A Futures contract can be held by an individual till the expiry of the contract. The tenure can be chosen from the current month to 3 months maximum. The expiry takes place on the Last Thursday of every month hence traders can hold on to it till then or square off their positions to avoid delivery.
Futures Contract-
A Futures Contract is a Legal agreement between 2 parties, (buyer and Seller) to Exchange the underlying security at a Pre-determined price on a Future Date. It is used by investors and traders as a Hedging tool and also as a Speculative tool.
There are up to 3 months of Futures Contracts available on the Stock Exchanges and one can choose from them. The Contract can be Held up to the Expiry date on which the buyer will have to pay the rest of the amount and take delivery of the underlying security and the seller has to give the delivery of the security on the expiry date. One can also exit their positions before the expiry to avoid the obligation of taking or giving delivery of the underlying security.
For example if one wants to buy a Future contract of ITC in the month of April, then there would be 3 options available, To buy the April month Contract, May or June month contract. Whichever month’s contract is purchased, He can hold on to the Contract till the last Thursday of that particular month.