What is Square off in Upstox & Other Trading Platforms?
- Asked By
- Updated On:14-Dec-2020
- Replies:3
Short Answer
Talk of square off in Upstox or any other stock trading platform in India it points towards completion of your intraday transactions. Let's see how it is! The meaning of square off remains the same whether its Upstox or any other stock broker in India for that matter.
Detailed Answer
What is the Meaning of Square off?
Square off is a trading technique used by day traders wherein they buy a certain asset(mostly stocks) at the start of the trading day and sell the same by the closing bell expected a certain amount of profit margins. For instance, Mr. X took 100 shares of RIL from the NSE Sensex at Rs.100 each. Then, sells at the same at Rs.105 each on the same trading day, hence booking a profit of 5%.
It simply means closing off all transactions before a trading day ends i.e. in before the market closes for the day. So if a person has bought shares, they will sell and visa versa.
What is Square off in Upstox?
A person settles all the transactions through his stock broker on the same trading day. In this case, the broker is Upstox via which the settlements will be made.
This is a compulsory action to take in case of Intraday trading. You must close all your orders scheduled for the day. In case you forget, your broker (here we are talking specifically of Upstox) will do it for you.
How to Square off in Upstox?
You can square off in Upstox using their mobile trading platform 'Upstox Pro'. It is both, an android and IoS supported application where you can find the 'ask price' option if you are looking to buy and the 'bid price' option if you are looking to sell. Once you click the respective buttons, it will ask you some details. Upon providing the necessary information your order will be placed.
What is the Square off time in Upstox?
Upstox facilitates intra-day trading in several financial products such as equity, commodities, currency, and futures. the automatic squaring off time in Upstox is different according to each security. Equity and F&O are squared off at 3.15 pm. However, the time to square off currency futures is 4.45 pm.
Sometimes the square off timing is different for different stock exchanges. If you have bought on the MCX exchange through Upstox, your holdings will be squared off 30 minutes before the closing bell of the market. Therefore, the closing time, in this case, is 10:30 pm to 11:35 pm.
What are the Charges for Square off in Upstox?
In case you forgot to, or skipped squaring off your transactions at the end of the day, Upstox (or your respective broker) does it automatically for you. However, that comes with an additional price. The charge for auto-square off in Upstox is Rs. 20 per order (plus 18% GST).
To avoid this cost, remember to always square off your pending orders before the day ends, or at a specific square off time.
Note: The market opens at 9:15 am and closes at 3:15 pm.
What's the MTM Square off Percentage in Upstox?
If the margins are breached and the customer is not reimbursing after warnings, the stock broker sells the shares automatically. The margin is usually 50-80%. This may take place without informing the client. The Square off percentage for MTM is decided by the risk management teams to ensure the minimization of risk as much as possible. For some premium clients, the cut off percentage is 70%.
Square Off in Upstox
So, these are some common queries regarding the meaning of square off and squaring off using Upstox that you might have liked reading. And, don't forget to square off your intraday trades ( through Upstox or any other broker) to avoid paying any extra charges and keeping the desired profits.
Ask Your Query for FREE, Get quick answers from our FINTRAKK community!
Discussion (2)
Squaring off means you complete the two complementary transactions in Intraday trading. So when you buy a stock, you have to sell it before the market closes, and when you sell a stock, you have to buy it before market closes. This is important to know because if you do not do it by yourself, your broker will do on behalf of you, and it will charge heavily from you.
Yes, Upstox is safe, good and a very reliable stock broker for trading and long term investing. Being registered with SEBI, NSE, BSE, MCX and CDSL the stock broker has built a good reputation and a decent customer base over the years.
When talking about the best stock broker in India, we cannot rule out Zerodha. It is the market leader in bargain stockbroking, is premised in Bengaluru, and accounts for more than 15% of total retail trading activity in the country. Mr. Nitin Kamath formed the leading brokerage firm in 2010 Kamath, and it now has a customer base of over 6 million.
With every stockbroker, there are some advantages and disadvantages. The cons of Upstox are plenty but covers up through its advantages. However, its disadvantages are that the trade and call feature is charged 20 rupees, IPO & FPO investment opportunities are not available, under the delivery segment, GTC & GTD orders aren’t supported, etc.
Yes, the Indian discount broker is backed by Mr. Ratan Naval Tata. He held a 1.33% stake in RKSV Securities (popularly knows as Upstox) at the beginning of the year 2019. RKSV in RKVS Securities stands for the initials of the names of founders (RK for Ravi and Raghu Kumar, and SV for Shrinivas Viswanath).
Sharekhan is a bang average stock brokerage site that offers good services and features in its trading facilities, customer service, and reasonable charges for opening a demat and trading account.
Although everything the Stock broker offers is fantastic, there are a few downfalls of using Groww. These include the exception of trading in the commodity segment, doesn’t have a savings account in 2-in1 accounts that it offers, popular financial tools such as cover orders bracket order aren’t available, and more.
Paytm has added its name to the stockbroking industry all through its new platforms “Paytm Money.” The platform was rolled out to customers earlier in September 2020 and had since then exploded amongst traders/investors to see the offerings set up by the company.
As online trading is getting popular every day, it is becoming even more important to choose the right trading platform. Choosing the best trading platform can give you more flexibility to trade in the various trading market.
Making money off the stock market is no easy feat. It would help if you had a calculated investment while reading the stock market and ensuring that you have all the metrics checked out for making a sensible investment.
While looking for a discount brokerage firm for my requirements(Long term investments, intraday investments, F&O investments), I came across Wisdom Capital Discount Broker in India.
Harleen Kaur
Square off is a part of the intraday or day trading activity wherein you have to close all open positions before the trading day ends. So, if you have bought shares, you have to sell and if you have sold shares, you'll have to buy before the stock market closes for the day.