What is the convert position in Zerodha and Uptox?

When a new investor comes to the market he has a lot of ambition and less technical knowledge about “how to use the broker’s app and website?”.

One of these topics is how to covert position and the nuances of using this feature.

Let’s start with the article.

Introduction

Many a time you may buy a stock for intraday gains but slightly negative news may bring the total gains of your position down in this case you may think of keeping the position for more than one day. To avoid losses you can use the ‘convert position’ option.

So that we will be learning how to convert position from intraday to delivery and vice versa. This article will cover position-changing techniques with two brokers.

If you want to convert the intraday position to delivery then you need to have a sufficient balance in your account. As with intraday trade, you can avail leverage but in most cases, leverage on delivery is not available.

What is the convert position in Zerodha?

In simple words, it means changing the holding period from one day (MIS) to more than one day (CNC) and vice versa.

The process of converting position on Zerodha is a simple 3 steps process.

  1. Open the Zerodha website or kite app. Log into your account with the right password, pin, or fingerprint.
  2. Go to the positions tab in the broker’s platform and click on the horizontal three dots alongside the stock of which you want to change the position.
  3. Now click on the convert option available there and make the changes as per the requirement.

What is the convert position in Uptox?

The process of changing position in Uptox is similar to Zerodha with a small change.

In the case of Zerodha, you will find these same three dots on the extreme right of the stock of which you want to change the position in vertical format, unlike Uptox’s horizontal format.

What is convert position in zerodha and uptox?
How to convert position on Uptox?

When do you need to use the convert position?

  1. The bad news about the stock can make the stock price nose drive and most possible hit your loss capacity or in the term of the stock market hit your stop loss. So, in that case, you may think of converting the position from delivery to intraday and square off the position.
  2. If you have you have a stock in intraday position and good news come out like the prices of the raw material, the company use to produces its final product comes down. In this case, may as well think of converting your intraday position to delivery to take complete advantage of this situation.
  3. When a trader takes a position in a stock he always has a limited risk of losing money. Thus in some cases, if the investor has built up a delivery position in order to hold on to the stock for the long term. But share prices go down and the entire trade going wrong ways, you can convert the delivery position to intraday by following the above steps.
  4. If the company is going for a capacity expansion, bad quarterly or yearly results, may be buying a film for an insanely high price, etc. these are examples of announcements a company can come up with. In the case of the announcement, the share prices can go any way depending on its type. But in the stock market, you can adjust your purchase position according to your interpretation of the same.
  5. This must have happened with you as well, that you must have anticipated that the stock will so from price A to price B within few days but instead of that, the stock price did this movement on a single day. Therefore instead of paying CDSL or NSDL fees and other charges which comes with delivery position, it will be better off for you to sell the position on the same day by using the convert position option.

Cost for using convert position

There are no extra charges for convert the position from intraday to delivery and vice versa with most of the brokers like Uptox and Zerodha. But confirm the same with your own broker.

At the end of the trading session, you need to pay charges according to the type of trade you have placed and these charges will depend on the individual to individual brokers.

What is auto square off ? and it’s charges.

If you change your intraday position from delivery to intraday. An investor will be charged auto square off charges by most of your brokers if he does not square off his position before the specified time of the particular market segment.

The auto square-off charges for Uptox and Zerodha are the same ₹50+18% GST. To learn more go to Uptox and Zerodha. (whichever is your broker). 

Also, these charges may not be the same with all the brokers, so confirm before using them.

Trade to Trade segment

The convert position option is not available in the trade to trade segment (t2t) in this segment you compulsory have to take the delivery of the shares and you cannot trade intraday in this segment.

A list of shares covered under this segment is available on BSE and NSE websites.

Conclusion

To conclude the article in the stock market you will find yourself in such a position that you may want to change share purchase position from delivery to intraday and vice versa, so you can do the same by using this “convert position” option.

Also, this option cannot be used in the trade-to-trade segment of the market.

Lastly, if you convert your delivery position (CNC) to intraday position (MIS) and do not the manual square of the position then you will be charged ₹50+18% GST if your brokers are Zerodha and Uptox with can check with your broker for the same.

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