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Upstox Margin Exposure Limit, Leverage for Intraday and F&O

Upstox is a SEBI registered online discount broker in India. It allows customers to trade across Equity, Derivative, Commodity and currency segments. When it comes to advanced trading platforms, Upstox has Pro Web, Mobile Nest Trader, Fox Trader and Dartstock.

Upstox offers various trading facilities to its customers to accentuate their trading experience. Margin Trading Facility is one such key offering of the stock broker.

Upstox Leverage Exposure

Margin Trade Facility (MTF) allows Upstox customers to invest in stocks by paying a part of the trading value. Upstox provides 50% leverage for stocks where you have to pay only half the price of the stock. This allows traders to trade in higher-value with limited funds and earn more profits.

Upstox provides intraday margins across equities, F&O, commodities, and currency futures. The intraday margin is applicable for the same day trade and not for the next days' executions. Positions for equities and F&O squares-off at 3:15 PM automatically. Whereas, positions for currency futures square off at 4:45 PM. For commodities, the positions square off 30 minutes before the commodity closing timing.

Upstox Exposure- Key Points

• Collateral or margin against shares facility is available
• Can tender securities in Demat form to get margins for delivery trades
• No minimum margin requirement with Upstox
• Margin money on derivative segment varies from clients to clients
• Intraday cash position can avail 5 times margin for the intraday position
• MTM breach level for cash margins is 50% to 80%
• Does not provide margin limits on penny stocks (not in the list of illiquid securities with the exchanges)

Upstox Margin Calculator

Upstox also offers Span Margin calculator to calculate each type of margins such as span, exposure, net premium, ELM and VaR.

What is Exposure Multiplier?

Exposure multiplier is the term defining the number of times the exposure margin is allowed in the cash segment. This exposure is made based on the availability of cash or stocks in the brokers' account.

How does Collateral or margin against shares work?

This margin facility is for the customers who have shares in their Demat account for long-term purposes. Here is an example of how it works:

Suppose a client has shares of 2 companies in the Demat account. He has 200 shares of Sun Pharmaceuticals Ind Ltd and 90 shares of Reliance Capital Ltd. If he pledges for 100 shares of Sun Pharma (available at Rs 414) to take future positions. The total value of the pledge request will be 100*414= Rs 41,400. Upstox will deduct 25% haircut which is Rs 10,350 from the total pledge value. The remaining balance which is Rs 31050 will be available as a collateral margin.

Based on the collateral available, he can accordingly place his trades.

Note-

• The collateral margin depends on the category of stocks, the trading segment (equities or derivatives) and trade type (intraday or delivery).

Frequently Asked Questions

Read more about Upstox

• Upstox Review - A Detail Analysis of Upstox
• Upstox Brokerage Charges, Fees, AMC, Transaction Charges
• Upstox FAQs
• Upstox Demat Account Review
• Upstox Mobile App
• Upstox Account Opening Process Review
• Upstox Branch Offices / Sub Brokers / Franchise
• Apply in IPO through Upstox
• Upstox Exposure
• Upstox Trading Software Review
• Upstox NRI Account Review
• Upstox Mutual Fund Review
• Is Upstox safe?
• Upstox Complaints Analysis

• Upstox - Safe, Reliable & Trustworthy Broker
• Upstox Options Trading Review

Glossary

• Exposure Definition
• Margin Definition
• Settlement Definition

Information on this page was last updated on Saturday, June 6, 2020