Buy stocks even when you just have 50% the funds

Blog | PRODUCT UPDATE

How many times has this happened? You spot a great opportunity in the market and know that it’s a golden investment. But darn! You are short on funds. What do you do? Ordinarily you’d either let it go or may be borrow money from the market to fund it. But face it… neither is a very feasible option. It’s precisely for sticky situations like this that we have introduced Margin Trading Facility.

What is Margin Trading Facility?

Defined, Margin Trading Facility is a process whereby you — as an individual investor — can invest in opportunities that you can’t normally afford at that given time, with funding from us. You bring in the 50% and we lend you the other 50%.

Eg: As per your calculation, ABC will show a positive. Their shares are currently worth Rs. 1,00,000 but you just have Rs. 50,000 in hand. Opt for MTF and Upstox will give you the other 50%; that is Rs. 50,000.

But why do I opt for it?

To increase your trading power! Now you no longer have to restrict yourself from investing in great opportunities because of shortage of funds or leverage restrictions.

And how much does it cost me?

You will be charged Rs.20/day for slabs of Rs. 50,000 taken as Margin Trading Facility.

E.g.: You have taken Rs. 80,000 as Margin Trading Facility.

You pay:

Rs. 20/day (for the first Rs. 50,000)

+ Rs. 20/day (for the other Rs. 30,000)

-------------------------------------------------

= Rs. 40/day as charges

And how do I activate it?

No physical declaration is required to activate Margin Trading Facility. You just need a one-time activation. This works as follows: 

1. On Upstox Pro (Web/Mobile)

  • On the web, when you log on to Upstox Pro, you will see a “Get Margin Trading Facility on your account!” announcement (right next to the logo). Click on it.
  • If you are on your mobile, click on the “Details” link, next to the “Get Margin Trading Facility on your account!”
  • You will get a window with brief details about the facility
  • Click on ‘Activate’ to activate Margin Trading Facility on your account
  • Then click ‘Accept’ to accept the terms and conditions
  • An OTP will be sent to your registered mobile number. Enter it and click on ‘Verify’
  • You will get an “Activation successful” message

       That’s it!

2. On Keystone
To activate Margin Trading Facility on Keystone, click here.

Once Margin Trading Facility is activated, you need to choose the “Enable Margin Trading Facility” every time you trade. Remember to choose ‘Delivery’ under ‘Product’.

How long will it take to be activated?

The facility gets activated in under a minute.

Do I need a separate Demat account?

No. You don’t need to open a separate Demat account for MTF. All those who have a regular Demat account with Upstox can enjoy the Margin Trading Facility.

What else I need to know?

  • Upstox will be offering you 50% of your trade value (up to Rs. 5,00,000).
  • The ratio will always be 50/50. E.g.: If your shares are worth Rs. 2,00,000, you put Rs. 1,00,000 and we fund the other
    Rs. 1,00,000.

Still have questions on mind? Simply head to our FAQ section to have all of them answered.

  • Bit confused. Is it for delivery trades? If not, how is it different from the current margins you are providing for OCO/BO orders for intraday?

    • Vaibhav Vora

      It is for Equity Delivery Long Trades.

  • All right, so it’s for delivery/positional trades only. 20/50k = 1.2% interest monthly = 14.6% interest annually. Fair deal.

  • rohan

    can we use this margin for F&O or it is only for cash market?

  • pravin

    who gets the benefit of dividend on stock …client or upstox?

  • Rahul

    Can we convert intraday position to MTF?

  • Neila Mezhatsu

    Is there any deadlines. Hold long can One hold delivery security with margin support…?

  • Neila Mezhatsu

    What about trader SHORTING security with Upstox MTF support, keeping positions for(multiple days) as long as stock price keep on falling ?

    • Vaibhav Vora

      Applicable only for Long Deliveries.

      • Neila Mezhatsu

        Thank you Sir

  • yuvraj koshti

    Does this applicable for positional future and option trades. Or it is only for equity delivary.

    • Vaibhav Vora

      MTF is applicable only for Equity Long Deliveries.

  • Bhaskar Bhattacharya

    Say, I’m having 10000 and avail Rs. 10000 as per MTF, my stocks went down and I incurred loss, so now how should I pay you back? is it still the Rs. 20/day or some other equation?

    2. Is positional derivatives trading allowed, i.e. future option trading. Also once availed will my trading automatically turned into MTF or will only be available if my balance is short.

  • sandesh sawant

    For BTST trade you will charge Rs 20 or Rs 40? How you are considering one day does it 24hrs or one trading day?