F&O contracts follow different settlement rules: Futures: Settled on contract expiry Options: Premium paid upfront, exercised/settled on expiry (physical or cash)

Minimal risk due to a robust risk management system by exchanges and clearing houses.However, in rare cases, auction settlements occur if delivery fails.

Yes. Only business days are counted. If there's a trading holiday or bank holiday on T+1, settlement is postponed to the next working day.