Upstox Margin Trading

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The trading term “margin” means that a broker is providing the client more purchasing power than he/she actually has in his/her account. Likewise, the Upstox margin trading allows investors to buy more stocks than they can afford. 

Upstox is safe and popular brokerage firm that comes with multiple benefits for its customers.

This means that Upstox would lend money to buy the shares and keep them as collateral.

The terms “margin” and “exposure” go hand in hand. If a broker claims to provide 2x exposure, it means that the broker is providing a 50% margin.

Different exposures/margins are provided by a broker on various segments. For example, 4x exposure may be provided on Equities, 2x exposure on Futures, and no exposure on Options.

Assume that you have ₹10,000 in your trading account Upstox provides a 50% margin i.e, 2x exposure on Futures. Now, if you want to trade for ₹10,000, the exchange shall require the full amount (₹10,000) from the broker.

Since you have got a 2x exposure, only 50% of the trade value (₹5,000) will be debited from your account. However, you must exit your currently held position by the end of the day.

There are several brokers who require an initial/minimum margin. This requires maintaining a minimum amount in the trading account always. For example, if the initial margin is ₹10,000 one must have at least ₹10,000 in their trading account.

You can analyze the margin balance in the Upstox with the margin calculator.

Moreover, the to make the efficient use of the margin MTM in Upstox assist you. It compares the real price of securities with the book value.

Upstox Margin Trading Facility

The Upstox margin trading facility is a form of funding on the Upstox platform through which one can invest in higher value stocks (which he/she can not afford at that time).

In this, the client only needs to invest the 50% amount and the rest 50% is lent by Upstox.

To use the Upstox margin trading facility, you just need a one-time activation. 

This is how to activate the Upstox margin trading facility on the Upstox Pro web:

  • First, login to Upstox Pro
  • Click on your desired script
  • Then click on “Buy”
  • Choose the Upstox order complexity as “Simple” and product type as “Delivery”
  • Tick the “Enable Margin Trading Facility” option
  • Then click on “Accept” ( for the terms and conditions)
  • Enter the OTP sent to your registered mobile number and click on “Verify”
  • You should receive an “Activation Successful” message once this facility is activated

Activating the Upstox margin trading facility on Upstox Mobile:

  • First, log in to Upstox Pro mobile app
  • Then click on your desired scrip
  • Hit the “Buy” button
  • Now, choose order complexity as “Simple” and product type as “Delivery”
  • Tick the “Enable Margin Trading Facility” option
  • Accept the terms and conditions
  • Enter the OTP sent to your registered mobile number and click on “Verify”
  • You will receive an “Activation Successful” message one the facility is activated 

You can also activate the Upstox margin trading facility via Upstox Keystone.

Note that after the Upstox margin trading facility is activated on your account, you must choose the “Enable Margin Trading Facility” option every time you trade. Also, always choose “Delivery” under “Product”.

Upstox Margin Trading Facility Charges

The Upstox margin trading facility, commonly known as the MTF not only simplifies the registration process and makes trading convenient with instant activation, zero subscription, and low-interest rates.

So now increase your trading power and do not miss out on the major opportunities for trade due to a shortage of funds.

To increase your trading power! Now you no longer have to miss out on great opportunities because of a shortage of funds or leverage restrictions.

Under the Upstox MTF, investors receive 50% of their margin funded (up to ₹5,00,000) at a low interest.

The investors willing to buy stocks for a short duration will be highly benefited by the MTF as their investment potential will be doubled. Further, they can meet their margin shortfall and easily buy high valued shares thereby increasing the absolute profit.

The traders and particularly the positional and the swing ones looking for a good margin on short-term trades can benefit from Upstox MTF. 

Therefore, the Upstox MTF allows its users to get twice the leverage on buying delivery stocks. The best part – they only need to invest 50% of the required funds. Upstox will offer the remaining 50% (up to ₹5,00,000).

The ratio, therefore, shall always be 50:50 i.e, If your shares are worth ₹1,00,000, you only put in ₹50,000 and Upstox will fund the other ₹50,000.


Upstox Margin Trading Charges

Upstox margin trading facility charge is ₹20 per day for slabs of ₹50,000 taken as MTF.

Assume that you take ₹80,000 as MTF. So you shall pay: ₹20 per day (for the first ₹50,000) + ₹20 per day (for the remaining ₹30,000). This equals to a total of ₹40 per day as Upstox margin trade facility charges.

Note that Upstox only charges on total amounts and not as per scrips to ensure savings on the client’s end. (Demat account charges are also applicable in this facility). Also, clients can get higher leverage in the Upstox Priority Pack account.

Thus, only the ones who have a Upstox free demat account can do margin trading with the firm.

Upstox does not provide the margin for delivery trading

Upstox Margin Calculator 

Upstox Margin Calculator is an online tool that calculates the exposure provided by Upstox on different segments – Intraday, Delivery, F&O, Currency, and Commodity.

This online tool not only calculates the Upstox margin funding but also assists in calculating the extra shares that can be bought with the extra leverage.

Here’s the Upstox margin trading leverage on respective segments:’

 


To Sum Up

Upstox is a new-age discount broker that empowers its clients with advanced technology and tools to make them investment savvy. It’s zero brokerage model has resulted in a three-fold increase in the firm’s total client base.

Formerly known as RKSV Securities, Upstox has introduced the MTF to promote instant fundings. The facility can be availed by users in real-time. 

The Upstox margin trading facility not only enables the investors to get instant funding but also meets their margin/leverage requirements.

This has further simplified the MTF activation process (enabling activation in just 3 clicks). This has eliminated unnecessary red tape MTF subscriptions and has reduced the registration time. 

Moreover, eliminating the hefty subscription fee has made this service cheaper – ₹20 a day for funding of ₹50,000.


In case you are interested in trading, then open a Demat Account now.

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