Upstox Margin Exposure Limit for Intraday and Futures (2024)

FAQs

What is maximum exposure provided in equity future & options intraday product? ›

As per the Securities and Exchange Board of India (SEBI) guidelines, the exposure margin cannot exceed 3% of the contract value. For example, if you're trading a Nifty F&O contract valued at Rs. 10 lakhs, the maximum exposure margin you'll have to pay is 3% of Rs.

HOW MUCH MARGIN IS REQUIRED FOR INTRADAY? As per the SEBI-mandated guidelines, if you intend to perform intraday trading on margin, you'll have to maintain an initial margin equivalent to 50% of your total investment amount. Also, you'll have to keep and maintain 40% of the market value as the maintenance margin.

Up to 5X margins on Intraday and CO Orders in Equity. Leverage NOT available for Intraday and CO Orders in F&O, Commodity & Currency (i.e. 1X margins)

Intraday trade represents buying and selling a stock on the same trading day. Upstox offers a leverage of Upto 20X for equity intraday.

The exposure margin is a type of margin that's blocked over and above the SPAN margin to mitigate any MTM losses. SPAN and exposure margins are determined by the exchange. So when you initiate a futures trade, you have to adhere to the initial margin requirement.

The rule of 50% cash margin will not be applicable to any Kotak Securities clients. The journey for placing orders in the F&O segment will be unaffected. The new rules implemented by the exchange do not affect any Kotak Securities client. The 50% cash has to be maintained by the broker and not the client.

On paper, intraday trading looks risky but in reality, you trade with stop losses and profit targets so your risk is automatically reduced in terms of maximum losses that can happen. Intraday trading is like borrowing from the market without paying any interest and to that extent, it is much better than margin funding.

For buying and selling stocks on the same day, known as equity intraday order, you will be charged brokerage of ₹20 per order or 0.05% (whichever is lower) for both buy and sell orders.

Which broker gives highest margin? ›

Note: If there are more than 5 instances of a shortfall in a calendar month, a penalty of 5% for every further instance of the shortfall is applicable. If the margin shortfall continues for more than 3 consecutive days, a penalty of 5% is applied for each subsequent instance of the margin shortfall.

Open Instant Account and start trading today. As per the SEBI circular dated November 19, 2019, starting from September 01, 2021, brokers cannot offer additional margin (i.e. 20x) in any segment including intra-day at BSE, NSE and MCX. The margin is now decided by the exchange and remains the same for all brokers.

Discount broking company Upstox, backed by Ratan Tata, has achieved breakeven in FY2022-23. The company is aiming for a 10-times jump in its customer base to 10 crore in the next 5-6 years, said its co-founder and CEO Rajiv Kumar. Apart from Ratan Tata, the company is also backed by investor giant Tiger Global.

While Zerodha offers free equity delivery, Upstox charges a lower 2.5% or Rs 20, making Zerodha a better long-term investment option. For intraday trades, Upstox and Zerodha charge a maximum brokerage of Rs 20. However, there is a catch for small traders. Zerodha charges a lower 0.03% or Rs 20 than Upstox.

The exposure margin is charged over and above the SPAN margin, and is usually done so at the discretion of the broker. Also known as an additional margin, it is collected in order to provide protection against a broker's liability that may potentially arise due to erratic swings in the market.

Exposure is a general term that can refer to the total market value of a position, the total amount of possible risk at any given point, or the portion of a fund invested in a particular market or asset. There are two types of exposure: financial exposure and market exposure.

People invest in equities because of their potential for high returns. In your investment portfolio, your “equity exposure” is another way of describing your exposure to the risk that you will lose money if the value of the stocks you own declines.

Market exposure represents the amount an investor can lose from the risks unique to a particular investment or asset class. It is a tool used to measure and balance risk in an investment portfolio. Having too much exposure to a particular area can indicate a portfolio needs to undergo broader diversification.