Upstox margin slips to -40k on an intraday position.

[amateurtrader33]

Here's a snapshot of the trades, if it helps. The ones with red dots are the trades in question

 

[amateurtrader33]

Of course, it's an RMS failure since RMS is supposed to (although they may or mayn't be LEGALLY obligated to in any given particular case but I can't say as I'm not a lawyer) squareoff customer-positions before they reach negative balances, it's good for the customers & it's good for brokers as they don't have to pursue clients to recover negative balances. Well, if they haven't strongly pursued you by calling or taking legal action to get the money back during an entire month's time, then I don't see the problem.

I did call them up the same day to ask them how this happened and they said it was a UC and I had to pay back. But no follow ups since then

 

[Newbie Day-Trader]

I did call them up the same day to ask them how this happened and they said it was a UC and I had to pay back. But no follow ups since then

You could seek legal advice if necessary but otherwise, unless you absolutely wanted to trade with them, the choice is up to you whether to pay or not.

 

[amateurtrader33]

You could seek legal advice if necessary but otherwise, unless you absolutely wanted to trade with them, the choice is up to you whether to pay or not.

So no real reason to worry/pay back? I got worried because I got a funds and securities balance report yesterday, and it reflected the negative of 40k

 

[Newbie Day-Trader]

So no real reason to worry/pay back? I got worried because I got a funds and securities balance report yesterday, and it reflected the negative of 40k

Again, I'm not in a position to give legal advice but if it happened to me then I'd probably not be too worried if they're not pursuing the matter since their RMS should've squared off the position; I checked RCOM chart on 17th May & it doesn't look like there were any major gaps, so the RMS should've been able to square it off without too many issues but maybe their RMS goes haywire whenever there are large moves in a stock, as was the case with PCJEWELLER when the other person had the same isssue.
Maybe you could post on Upstox's thread in the broker's forum, & try to get a final resolution, like the other person with the negative balance did, & with a lot traders watching, they'd want to handle the situation differently than if you were to call them or otherwise approach them alone.

 

[Contra]

Rule #1: Never trade "in-the-news-for-the-wrong-reasons" stocks like RCom & PC Jeweller on crappy discount broker platforms -- that too in futures.
Rule #2: Never forget Rule #1.

For what it's worth, RKSV/Upstox RMS team is often asleep at the wheel. This isn't the first time they've goofed up and won't be the last. Take up the matter with their compliance office, not their dumb front-end executives.

 

[Newbie Day-Trader]

Rule #1: Never trade "in-the-news-for-the-wrong-reasons" stocks like RCom & PC Jeweller on crappy discount broker platforms -- that too in futures.
Rule #2: Never forget Rule #1.

For what it's worth, RKSV/Upstox RMS team is often asleep at the wheel. This isn't the first time they've goofed up and won't be the last. Take up the matter with their compliance office, not their dumb front-end executives.

That's right, a lot of times, the front-end people only know the basics, & don't know how to handle such major issues; not to mention, it's also in their interest to have a look at RMS failures since on a bad day, they could have many clients with negative balances, & then it will be a very difficult situation for them to manage, they could go out of business or something.

 

[amateurtrader33]

Connected with them on twitter, this is what they said -
"It was due to scrip movement in which was very spontaneous thus leading to such % of losses. We understand the concern, but cannot do much since the volatility in the scrip cannot be controlled. "

Does this sound right? I asked them to clear my negatives, they said it won't be possible. Their response is somewhat vague and sounds like they want to cover this

 

[dr_zindgi]

Here's a snapshot of the trades, if it helps. The ones with red dots are the trades in question

View attachment 26105

I am not anybody related to upstox and also not having account with them. I opinion is in favor of upstox rms. I I observed the chart of rcom on that particular day. And noticed that it was locked at UC for quiet about 15 min at 12.05 Rs price. But at that time your loss would be around 220000 so rms did not throw an order. When UC open price jumped and your loss reached more than 32000 so rms throwed a square off order which executed at the said price. Here main culprit is position size and volatility.

 

[amateurtrader33]

Update: Have cleared my negatives which, No BS, wiped my savings. Closing my account with them.