If you use Upstox for margin trading (Margin Trading Facility or MTF), you might have noticed the buzz about their recent update. The broker has removed the 365-day cap on how long you can hold MTF positions. This isn’t just a small policy tweak—it’s a big deal for traders who rely on leverage for medium to long-term plays.
What Changed?
Earlier, Upstox enforced a rule where MTF positions had to be squared off within 365 days, no exceptions. Now, that limit is gone. You can hold leveraged positions indefinitely—as long as you meet other margin requirements and don’t violate any risk parameters set by the broker.
Who Benefits the Most?
- Long-Term Traders: If you’ve used MTF to hold stocks for months or even years (like swing traders or positional players), this update removes the headache of forced exits just because of a calendar rule.
- Investors Using Leverage: Some investors use MTF to amplify their buying power for fundamentally strong stocks. The 365-day limit was arbitrary and didn’t align with their holding strategy. Now, they can stay leveraged as long as they want.
Who Can Ignore This?
- Intraday or Short-Term Traders: If you’re squaring off positions within days or weeks, this update doesn’t affect you. You were never hitting the 365-day limit anyway.
- Cash-and-Carry Traders: If you don’t use MTF at all, this is irrelevant to your trading style.
Real-World Implications
- No More Forced Exits: Earlier, if you held a stock for over a year on MTF, you had to close the position or convert it to a cash trade. That’s no longer a concern.
- Flexibility in Strategy: You can now align MTF with your actual trading goals, not an arbitrary deadline.
- Watch the Interest: MTF isn’t free—you’re paying interest on the borrowed amount. While the time limit is gone, the cost of holding a leveraged position long-term adds up. Make sure the math works in your favor.
How Does Upstox Compare?
Most brokers with MTF offerings have some form of time limit, though not always a hard 365-day rule. Zerodha, for example, also doesn’t enforce a strict calendar limit but may review positions for risk. Upstox’s move aligns them closer to competitors like Groww, Angel One, where MTF is more flexible. The key takeaway here is Upstox is giving traders more rope, which can be a good thing if you know how to use it, but it doesn’t change the need for smart trading and investing practices.
The Bottom Line
This is a meaningful change for those who actively use MTF beyond quick trades. It removes a deadline that often forced decisions before traders were ready. But it’s still leverage, still incurs daily costs, and still requires discipline. The flexibility is real, but so is the expense of holding borrowed capital. If you’re an active trader, consider pairing MTF tools with a brokerage-agnostic tool (like an Excel tracker to monitor leverage risk) to ensure you’re not overspending on interest.
This update removes a frustrating constraint for traders who use MTF beyond a year. It’s a practical change, not a marketing gimmick—especially for traders who’ve faced issues like margin calls or unnecessary turnover pressures for long-term trades.
Forget the hype. This is one of those updates that makes trading smoother without forcing traders into unnecessary actions to maintain their positions.