Upstox offers the clients Margin Trading Facility (MTF) positions for a better trading experience. There are certain conditions set by Upstox, failing which the broker will sell your position. Read on to know the terms:

• Tenure: According to the terms and conditions for MTF, Upstox offers a tenure for the MTF position holding.Upstox shall intimate in advance to close the MTF position. Clients failing to exit or convert the position within the intimated time, you can expect the positions to get squared off.

• Margin Failure: Not keeping the required margin can lead to a margin call. Upstox usually allows you to fix the problem until the next trading day morning or (T+1) day.

• SEBI regulations: If the collateral or margin drops to the low circuit or below the margin set by SEBI or the regulatory boards, your MTF positions can square off within the trading day.

• Debit in ledger: If there is unpaid debit lying in the ledger beyond 5 working days, the position may be squared off partially or fully.

Exiting an MTF position on time helps build discipline around patience and portfolio management. Since interest on borrowed funds accrues daily, holding beyond what is required can gradually reduce your returns.

With platforms like Upstox offering clear tenure rules, eDIS authorisation, and transparent pledging processes, traders have the tools to manage MTF positions more effectively while keeping portfolios healthy.

Terms & Conditions Apply:

RIGHTS & OBLIGATIONS OF STOCK BROKERS & CLIENTS FOR MARGIN TRADING FACILITY (MTF) - NSE & BSE