Introducing the all-new Margin Pledge on Upstox!

Product Updates
1

Margin Pledge is a way to get more funds for trading by pledging existing Stocks, SGBs, ETFs etc. For instance, if one of your Stocks is trading at ₹100 and you pledge that Stock, you can get up to ₹85 for trading.

Recently, we’ve revamped our Margin Pledge feature to help you boost your trading power and improve your trading experience.

Here’s what we have added:

  • Pledge Mutual Funds as collateral :moneybag:
    Along with Stocks, ETFs and SGBs, you can now pledge your existing Mutual Funds and get margin for trading.

  • Equity Intraday Trades :rocket:
    Margins against Stocks, ETFs, SGBS and Mutual Funds can now also be used for Equity Intraday trading. Earlier this margin was only available for F&O trading.

  • Quick & easy pledging :stopwatch:
    Your pledging requests will be instant and the margin will be credited to your Upstox account within 15 minutes.

  • Option Buying :chart_with_upwards_trend:
    Earlier, only Futures buying/selling and Option selling was possible with margin from Margin Pledge. Now you can use it to buy Options as well.

  • No 50:50 cash-to-collateral ratio for F&O trades :balance_scale:
    Earlier, while using margin for overnight F&O positions, it was compulsory to maintain 50% amount in cash and a 50% amount in collateral margin. Now even if you don’t maintain this ratio, it’s alright.

You can use 100% of the collateral margin from pledging for your F&O trades without needing to maintain an equal cash-to-collateral ratio. If you don’t meet the 50:50 ratio, simply pay a small interest of 0.05% per day on the cash margin shortage.

And if it’s an intraday trade, there’s no need to pay any interest.

Why use Margin Pledge

  • Take bigger trading positions without new capital
  • No more missed trading opportunities due to a lack of funds
  • Enjoy low-cost pledging starting at just ₹20/order with no paperwork

Here’s how Margin Pledge works:

Let’s say your holdings are worth ₹1,00,000 on Upstox. You wish to trade in F&O or place Equity Intraday trades worth ₹90,000, but you don’t have enough funds. With Margin Pledge, you can pledge your holdings as collateral to get funds for trading.

:confused: Why don’t I get the entire 100% worth ₹1,00,000 for trading?
Because markets keep fluctuating and to prevent brokers from the risk of losses, SEBI advises brokers to levy a haircut on the pledged amount. In the above example there’s a ₹10,000 haircut applicable on the pledged amount of ₹1,00,000.

:moneybag: How to use Margin Pledge
Using Margin Pledge on Upstox is easy-peasy. To get started, watch our video here https://youtu.be/9rdxVbTomXM

:bulb: What else to keep in mind?

  • Margin Pledge is applicable on selected stocks only. You can refer to the link here: LINK.
  • On pledging Stocks, you will continue to receive benefits of corporate actions such as bonuses, dividends, splits and others.

For a detailed guide, please refer to our Margin Pledge Policy and FAQs.

2

Hi. i still see all the mutual funds under margin pledge = no in the list of eligible scripts. can you please check. i am not able to pledge any of the fund (mostly bluechips and midcaps)

3

Hi @Nikhil_Mehta,

Welcome to the Upstox Community!

We are actively looking into this issue and will give you an update soon. Thanks.

4

I recently opened account reading mutual fund pledge is allowed. Transferred large amout of money and now i cant pledge my mutual funds. Give me deadline or i have to switch to some other platform.

5

Hi @drvmehta,

Welcome to the Upstox Community!

We are actively looking into this and will get back to you with an update tomorrow. Thanks.

6

So sweet of u. I have gone through other msgs as well and u have been saying this for last October. Hope u have something concrete tomorrow.

7

Hi @drvmehta,

This is a momentary issue and we are already working with the Exchange to resolve this. It should be fixed by tomorrow.

8

seems like you guys used to allow margin pledging for MF earlier. i have gone through the other post dated 2jan25 where the file you attached containing list of eligible scripts allowed mutual funds. i also converted all my MF from SOA to demat for this same reason (a hassle in itself but thanks to you guys for being very helpful there). Now do you mind telling us what made you guys change the margin pledgiding facility for mutual funds? is this something related to exhange or some internal issue? just trying to estimate the time it would take you guys to resolve this.

9

Hi everyone,

We appreciate your patience and the feedback shared on this thread.

There was a momentary issue with pledging mutual funds, but we have worked closely with the exchange to resolve it. As of now, Upstox users can pledge from a pool of 6000+ scrips, including ~5000 mutual funds.

You can check the margin pledge portal here Upstox Accounts

If you’re still facing any issues, please try again, and feel free to reach out to our support team for assistance. We’re here to help!

Thank you for being a valued part of the Upstox community.

Screenshot 2025-02-04 at 10.20.23 AM
Screenshot 2025-02-04 at 10.20.23 AM1920×950 215 KB

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Hope this helps @Nikhil_Mehta @drvmehta

Let me know if you have any other queries

2 Likes
10

working fine. thanks

1 Like
11

Hi, very urgent - seem slike upstox is having these issues again and now my capital at risk
i was able to pledge my funds earlir and as per latest margin report, it still says they are pledged. but in the funds section, i dont see those funds available in collateral now and the margin used now is from cash instead of colalteral. i have open positions and this could trigger margin call and liquidation of my portfolio because of your fault. i tried to raise this via chat but their response is “it will take 24-48 hrs” now i cant wait for you guys to add my collateral again. this has been pain and needs to be raised to SEBI now i believe. Alos, in your margin pledging portal, i can see my mutual funds as pledged. not sure why collateral value from MF vanished.

13

Hi @Nikhil_Mehta,

Please be assured that your collateral is safe and will be visible at 7:30 AM once the service allocates the margin for the next trading day. Meanwhile, could you please share your UCC with us? Thanks.

14

hi, my ucc is 35C3NC

15

understood. but may i understand what is the reason for this? i mean stocks/ETF pledging looks all fine but mutual funds pledging needs to be refreshed in the morning? also, is this something i should expect everyday?

16

I pledged mutual funds worth 30lacs few days back and received 20lac margin. I took position worth 15 lac in options and today i received margin call email as a surprise. When i checked in upstox, it is showing me ZERO margin.

Hey are you mad? Where is my pledged margin?

18

Hi @drvmehta,

This was an issue from the Exchange. We have identified it but unfortunately this cannot be fixed before the market ends. In the meanwhile, we are trying to find a solution to give momentary relief to the customers. Will keep you updated on that. Thanks.

19

Hi @Nikhil_Mehta,

Yes, everyday the MF value gets refreshed in the morning.

20

Hi @drvmehta,

Our team has tried to reflect collateral against MF as a temporary relief. Please check this in sometime if it’s working for you. Thanks.

21

thanks for the update. would be helpful if you just add a note there saying the values displayed could be incorrect due to server maintenance on weekends - as discussed with your support exec.

22

Thank you for your feedback, @Nikhil_Mehta. We appreciate your suggestion and will definitely assess its feasibility.