FAQs:
What is the Ready-made Option Strategies feature in Upstox Pro?
The Ready-made Option Strategies (ROS) feature provides pre-curated trading strategies specifically designed for index options. These strategies help traders identify trading opportunities, minimise risk, and maximise their profit potential without the need to manually create complex option strategies.
How do I access the Ready-made Option Strategies feature?
To access ROS:
- Open the Upstox Pro app.
- In Watchlist, select/search for your preferred index (for eg: NIFTY 50).
- Click on the ‘Strategies’ tab.
- From here, you can view pre-curated strategies for index options.
- You can also access this feature via the ‘Discover’, ‘Orders’ and ‘Portfolio’ tab.
Can I modify these Ready-made Option Strategies?
We don’t allow you to modify the ready-made option strategies. However, these strategies are pre-curated for optimal performance and you can select specific strategy based on your risk appetite (eg: low risk, high risk).
Is there a cost associated with using ROS?
Accessing the strategies on the platform is free. However, the normal brokerage fees for executing trades through Upstox will apply.
How do I choose the best strategy for my trading needs?
Upstox Pro provides you with detailed information about each strategy, including its risk/reward profile, potential returns and maximum loss. Choose a strategy based on your view of the market (bullish, bearish, neutral, volatile), your risk appetite and your trading goals.
Can I track my profit and loss on these strategies?
Yes, Upstox Pro provides real-time profit and loss tracking for any strategy you execute. You can monitor your performance and adjust accordingly.
Can I square off ROS partially?
No, ROS does not allow for partial square-offs. The strategies are designed to be squared off entirely at one go to maintain the integrity of the multi-leg strategy.
Is there a minimum margin requirement?
Each strategy will require a different margin amount based on its components and risk profile. The exact margin requirement is displayed before you deploy the strategy. Ensure you have sufficient funds in your account to cover the margin.
How many lots can be there in a single order?
The quantity can be a minimum of 1 lot and a maximum of 10 lots in a single order.
How do we manage handicapped legs?
In a multi-leg options strategy, we try to maintain the sanity of trades and ensure the strategy should not have handicapped legs. However, in certain cases (for eg: margin shortfall, liquidity etc) if you end up in such a scenario, we will monitor and trigger you with a notification to help manage the position.
Are there any overnight carry forward conditions?
No, there are no such conditions.
What about overnight handicapped legs carry forward and square off logic?
In case of overnight positions, if one leg of the strategy becomes handicapped, Upstox Pro automatically manages the strategy to prevent loss escalation, and the remaining legs are managed accordingly based on pre-defined logic. However, as a best practise, we always encourage users to cross-check before the market closes.
How do we calculate the price of the options/contracts/legs?
The price of each leg is calculated using the real-time market data for each option in the strategy.
Where can I see my deployed positions?
You can see your ready-made option strategies orders under the ‘Orders’ screen strategy tab and your deployed positions under the ‘Portfolio’ screen strategy tab grouped together.
How do we manage smart sequencing to optimise the funds?
Upstox Pro utilises a smart sequencing mechanism that prioritises the order in which the legs of a strategy are executed, minimising the funds blocked. By executing certain legs first, it ensures that the required margin is efficiently managed.