Introducing Margin Pledge for Option buying

Do More With Less - Margin Pledge now available for Option Buying
Margin Pledge is a facility where you can use Stocks and ETFs from your Holdings as collateral to avail margin for F&O trading!

:money_with_wings:Why trade with Margin Pledge on Upstox

  • So you never miss another trading opportunity due to lack of funds
  • You don’t have to use your own capital to take new trading positions

:arrow_double_up:Key highlights of Margin Pledge

  • Enjoy collateral margin against 1300+ stocks and 130+ ETFs
  • No need to maintain a 50:50 ratio between Cash and Collateral. Once you exceed the 50:50 ratio between Cash and Collateral, you need to pay a small interest of 0.05% per day. Know more here - What is Margin Pledge? - Upstox Help Center
  • Margin can be used for both Futures & Options buying and selling!

:point_right:For instance, let’s say you’ve got holdings worth ₹1,00,000 on Upstox. And you wish to place an F&O trade worth ₹90,000 but don’t have enough funds in your account. With Margin Pledge, you can get a collateral margin up to ₹90,000 against your holdings.

:confused:Why don’t I get 100% collateral margin worth ₹1,00,000
Because markets keep fluctuating and to prevent brokers from the risk of losses, SEBI advises brokers to levy a haircut on Margin Pledge

:bulb:What else to keep in mind

  • For overnight F&O positions, its mandatory to maintain 50% amount in cash and a 50% amount in collateral margin
  • You can gain 100% margin against NIP IND ETF LIQUID BEES, DSPAMC - LIQUID ETF and ICICILIQ and SGBs without the need to maintain 50:50 cash to collateral ratio
  • On pledging stocks, you will still receive benefits of corporate actions such as bonus, dividend, splits and others

Got more questions? Read the policy and FAQs here: Margin Pledge Policy and FAQs - Upstox Help Center

Explore Margin Pledge now: Upstox Accounts