Announcements

As per SEBI’s mandate all depository participants and brokers had to implement a revised process for authorizing sell orders from clients demat accounts from today, 1st June, 2020. Our depository participant is CDSL. We too, implemented this process and went live today. Read more here: https://upstox.com/market-talk/an-introduction-to-our-revamped-e-dis-process/

However, since this morning there are some intermittent issues with CDSL's TPIN authorisation service. CDSL is working on getting this back up soon.  Demat authorization services of all brokers using CDSL has been affected by this. Non- POA customers won't be able to place sell orders from their holdings until then. We regret the inconvenience caused. We will update you as soon as the service is back up.

Square off will be at 3.10 PM for Equity Intraday and F&O, 4.45 PM for Currency Derivatives, and at 11 PM for MCX. Kindly plan your trades accordingly.

?Up to 10X margins on CO orders in EQ (for F&O-listed stocks only).
?Up to 10X margins on CO orders in Nifty and Bank Nifty Futures only.
?Up to 5X margins on Intraday orders in EQ (for F&O-listed stocks only).
?Up to 4X margins on Intraday orders in Currency Derivatives.
?Up to 3X margins on Intraday and CO orders in F&O.
?Up to 2.5X margins on Intraday orders in MCX.
?OCO orders are blocked for the day.

The long-awaited margin framework for futures and options has gone into effect on 1 June 2020. With this change, traders who have hedged their positions (i.e. have multiple positions that fully or partially offset the risk of loss) will be required to keep lower margins, and conversely, for higher-risk positions, the margins will be higher. For certain low-risk strategies, the margin decreases by as much as 70%. This is expected to encourage a new class of risk-averse traders to enter the market.

The methodology that determines the F&O margins has been modified in such a way that in a highly volatile market, a higher margin will be required for unhedged positions. Further, given that market volatility has been high during the current pandemic, the margin required for unhedged positions is ~30% higher on average. However, as market volatility reduces, the trading risk will be lower, which will bring down the margin requirement.

We advise all clients to adjust their options strategies to make the most of the revised margin framework. 

Please note:

Clients having open positions as on 29 May 2020 can view revised margin requirements on 1 June 2020 on the Pro Mobile app and Pro Web. If you have any unhedged positions, the margin required will be higher and you shall be required to add funds by 1.00 pm on 1 June 2020 to maintain your positions, following which such positions shall be squared off at any time.

Due to SEBI's new margin rules applicable from Monday, we do foresee a sudden jump in required margins for overnight F&O & CDS positions. To account for this, we are partially increasing the margin requirements from today for carry forward F&O and CDS positions.