Hello,
I have taken an FnO position worth 9 lakhs yesterday. I have Liquid Collateral of 14.7 Lakh through pledging Zerodha LiquidCase and 25 lakh as Equity collateral by pledging Equities.
I have a Cash balance of 2 lakh in my demat account. Having all these funds in my account, still my Available to withdraw is negative. Also my payout request of 77000 which I put yesterday got rejected.
Why ?
My Demat Id is HJ9363.
Hey @emilkochukudy,
thanks for reaching out.
In the case of margin from pledging, the cash-to-collateral ratio is 50:50.
If there is a carry forward position in your account, the span and exposure margin get blocked. The margin blocking results in fluctuations of the available to withdraw balance and the withdrawal will be rejected if sufficient funds are unavailable.
The funds are blocked at the end of each trading day and details of the same are updated in your ledger report. Also, cash and collateral margins are bifurcated in the fund’s wallet, and you can verify the availability in the specific section. Since you have a FnO position, your margin is currently being utilized. You can verify the transaction in the ledger report here: What is a Ledger report and how do I access it? - Upstox Help Center.
Learn more about the margin pledge here: What is Margin Pledge? - Upstox Help Center.
Hope this helps. Feel free to reach out to us if you have any other questions.
I didnt get this. I know that cash-to-collateral is 50:50. I have Cash Collateral of 14.7 Lakh through pledging Zerodha LiquidCase and 25 lakh as Equity collateral by pledging Equities. I think the balance is maintained here. With my understanding, with this margin I can take carry over FnO positions worth 24 Lakh maximum. Right ?
Also I am maintaining additional liquid cash in my account. So, I still dont know how a position of just 9 Lakhs blocks that liquid cash of 2 lakh in my account and showing a negative balance of 6.11 Lakh. Pledged cash margin of 14.7 Lakh and pledged Equity Margin of 25 Lakh isn’t enough to cover a position of just 9 lakh ?
Or is it the margin received from pledging Zerodha Liquidcase is not considered as cash collateral by upstox ?
Hi @emilkochukudy,
To better assist you with your query, someone from our team will reach out to you shortly and address this in detail.
Hello @vishalchawda ,
I got a call from Upstox regarding this. He explained everything how Upstox is managing funds. He said for overnight positions Upstox is using Margin received from Equity first. To be frank, I still didnt get it. Even if the Equity Margin is used for my overnight position, still Upstox dont have to block my liquid cash (2.30 lakh) which I kept as additional in my account for other purposes as I have enough margin both cash margin (14 Lakh ) and Equity Margin (23 Lakh) for an overnight FnO position of just 9 Lakh.
See, I am not new in trading in FnOs. Been trading for almost one and a half year and was using Fyers before moving to Upstox. There, I didnt experience such problems. Even if I had Overnight Positions there, they didnt block my additional cash funds and I used to withdraw it there. I am having a situation where I am not able to withdraw my idle cash from upstox just beacause I have an FnO position which has nothing to do with that cash.
What I came to know about Upstox from my fellow traders is that Upstox’s fund management is so poor. I came to Upstox just because Fyers dont support Sensibull and I dont like Fyer’s Web Platforms especially its Option chain windows and order placing windows. I am more comfortable with Sensibul.
Please note this as a feedback also:
I know Fyers is a small small broker compared to upstox. But comparing with upstox, Fyers is offering a lot of options for options traders. They are providing facilities for pledging mutual funds. For cash collateral margin they are offering pledging facility for SGBs, Liquid Funds and ETfs and many more and they are providing these since one year. Upstox is providing only SGBs and some ETFs only. Upstox dont even provide facility for pledging Mutual Funds. Also I used to get more margin while pledging equities there in Fyers. Pledging is free there in Fyers while upstox is charging.
Please look in to it.
Thanks.
Hi @emilkochukudy ,
Thank you for your feedback. We have shared it with our team for further review and action.
