What is Square off in Upstox & Other Trading Platforms?

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.

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Discussion (2)

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.

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.

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