Expanding Your Buying Power
Until now, purchasing equity shares in the delivery segment on Upstox was limited by your available cash balance. With this new enhancement, you can now use both cash and collateral margin to buy stocks in the delivery segment - giving you greater flexibility and more opportunities to trade without being constrained by immediate cash availability.
For traders who actively seek to capitalize on market opportunities, limited cash balance has often been a hurdle. This feature solves that problem by enabling:
- Higher Trading Power: Combine your cash and collateral margin to buy more stocks.
- Greater Flexibility: Diversify your portfolio without having to liquidate existing holdings.
- Seamless Experience for Swing and BTST Traders: Perfect for those who need quick access to funds.
- Instant Pledging: Pledge your holdings and receive collateral margin in under 5 minutes, ensuring you never miss a market opportunity.
Why This Feature Matters Now
In a fast-moving market, flexibility and liquidity can make a huge difference. This enhancement builds on the existing Margin Pledge product by extending its benefits to the delivery segment. With more traders looking for efficient ways to use their holdings, this update ensures they can take advantage of every opportunity.
Who Can Benefit from This Feature?
This feature is best suited for seasoned investors and active traders who understand how collateral margin works. It is particularly useful for:
| User Type | Applicable? | Benefits |
|---|---|---|
| Swing Traders |  |
Trade with higher capital without waiting for fund |
| BTST Traders | |
Trade with higher capital without waiting for fund |
| Long-Term Investors | |
Use collateral without selling long-term holdings |
| Day Traders | |
Leverage existing holdings to execute more trades |
| Casual Investors |  not recommended |
Not recommended due to the risk of liquidation and complexity of managing collateral margin |
- To take advantage of the feature, pledging existing holding is required.
Learn More: How to Pledge Holdings for Collateral Margin and related FAQs
How to Activate and Use the Feature
- No activation required – The moment you pledge your holdings, collateral margin for equity delivery is automatically enabled.
- Pledge your holdings through the Upstox platform.
- Your buying power increases, allowing you to purchase stocks without needing the full cash amount.
- The collateral margin works seamlessly alongside your cash balance, ensuring smooth transactions.
Learn More: About the implications and scenarios related to Margin usage for equity delivery
What’s Next?
We are also working on an option for users who may want more control to disable collateral margin for equity delivery, providing flexibility based on individual preferences.
The ability to use collateral margin for equity delivery is a game-changer for traders who want to maximize their buying power and seize market opportunities without immediate cash constraints. By extending the benefits of our Margin Pledge product, we aim to provide users with a flexible and efficient trading experience. Whether you’re an active trader or a seasoned investor, this feature ensures you can trade smarter and more effectively.
What do you think about this enhancement? We’d love to hear your thoughts, questions, or feedback!