One of the most common requests from traders at Upstox was simple:
“Why can’t I use my collateral margin in commodities?”
I could relate. Your portfolio already has value. You pledge it, unlock collateral margin, and deploy it during the day in equities or derivatives. But when it comes to trade in the commodities market, that same capital sat idle.
It was not a matter of intent. It was about structure.
Why This Wasn’t Possible Earlier
Upstox had separate wallets for securities and commodities due to operational reasons.
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Collateral margin flowed only into the securities wallet.
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Commodities trades ran on a different wallet.
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Which meant pledged margins could not move between the two.
For traders, that was a clear inefficiency. Your assets were pledged, but you could not make the most of them.
What We Did About It
We went back to the drawing board with a clear goal: make capital efficient across segments.
The solution was to merge both wallets into one.
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Now there is a single unified pool of funds.
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Collateral margin can be used for both securities and commodities seamlessly.
The outcome is simple: less friction, more flexibility.
Why This Matters Right Now
This update comes at a time when Gold and Silver have touched all-time highs on MCX. These are not just headlines for traders. They are signals that capital efficiency is more important than ever.
Imagine this flow:
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In the morning, you use your collateral margin to trade equities.
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By evening, as Gold and Silver start moving on global cues, the same margin is ready for commodities.
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No transfers, no waiting, no idle funds.
Your capital stays active across both sessions.
Trading Gold and Silver with Collateral
Gold has always been a global barometer. Its price moves when inflation numbers shift, when central banks adjust rates, or when geopolitical risks rise. Silver follows the same direction but reacts with sharper swings, creating more volatility.
Professional traders often:
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Use Gold for building safer directional positions.
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Trade Silver for volatility and short-term gains.
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Balance the two for diversification and hedging.
With collateral margin now active in commodities, you can:
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Trade Gold and Silver contracts without parking fresh funds.
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Rotate the same capital between equities in the day and commodities in the evening.
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Capture more opportunities from the same pledged portfolio.
For active traders, this is about squeezing the maximum utility out of every rupee of capital.
As a product manager, I see my role as clearing frictions that traders face every day. As a trader, I know how important it is to keep capital in play when opportunities arise.
This update is more than just a system change. It is about respecting the way traders operate - moving between equities and commodities, reacting to global cues, and needing margin that flows with them.
We will keep improving in this direction. I would love to hear your suggestions on how else we can make collateral usage smarter and more flexible.
Your portfolio has always carried value. Now it carries more opportunity too.