How to convert trade and open positions?

•6 min read•by Angel One

Traders can convert intraday trades to delivery, margin (MTF), or carry forward positions, subject to margins and cutoffs.

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During trading hours, position conversion enables a trader to switch an existing trade from one order type—such as intraday or delivery—to another. For instance, one can take intraday, delivery, margin, and futures and options trades and convert those into open positions. Traders can also do the reverse, provided they meet all margin requirements and adhere to cut-off times for intraday trading.

Key Takeaways

Traders can switch the position type based on the trading intent of an intraday, delivery, margin, or futures and options (F&O) trade.

Conversion of the position type may also alter margin requirements in relation to the newly created order type.

Cut-off times are also in place for intraday conversion to prevent an auto square-off from occurring.

Conversion is ideal for "riding the momentum" of a stock that hasn't hit its target by the end of the day or for buffering against short-term intraday volatility.

Equity

Intraday – Where you buy and sell the stock within the same day (T-day)

Delivery - Where you hold the stock for a longer time

Margin - Where you opt for Margin Trading Facility (MTF)

Futures and Options

Intraday – Where you buy and sell a scrip within the same trading day (T-day)

Carry Forward - Where you take the position that stretches for more than 1 day

When Should You Opt for Conversion of Trades?

Trade conversion is beneficial when your original trading strategy has to be adjusted to reflect changing market circumstances, shifting risk tolerance, or new profit possibilities. This flexibility, such as changing intraday holdings to delivery or margin before cutoff dates, helps to prevent auto square-off while keeping transactions in line with available funds, margin restrictions, and market mood.

In practice, traders utilise conversion to capitalise on multi-day momentum, control volatility, or rebalance exposure without being limited to the initial order type. Here are some of the situations where trade conversion makes sense:

Hold overnight: Convert intraday to delivery or margin when the stock has longer-term potential, letting you escape same-day settlement pressure and ride temporary declines for potential profits.

Missed intraday targets: Shift positions when the stock fails to meet same-day profit targets but technical or fundamental signs indicate multi-day gains, avoiding forced withdrawals at unfavourable prices.

Free up margins early: Once goals are met ahead of time, square off or resort to intraday trading to free up margin for new trades and allow for greater capital rotation during favourable market swings.

Risk management shift: Adjust exposure in response to unexpected changes in sentiment, budget constraints, or volatility, such as transitioning from high-leverage intraday to more steady delivery when fundamentals improve.

Volatility buffer: When you foresee considerable appreciation over time, extend your holding periods to withstand intraday fluctuations, balancing short-term volatility with long-term potential.

Also Read, What is Swing Trading and its Strategies?

Position Conversion Options Available On AngelOne

The table below will help you understand the conversion options available.

Segment	Original Order Type	Converted Order Type
Equity	Intraday	Delivery & Margin
	Delivery	Intraday & Margin
	Margin	Intraday & Delivery
F&O	Intraday	Carry Forward
F&O	Carry Forward	Intraday

Note: if you are converting positions to or from intraday orders, you need to convert equity orders before 03:15 PM and F&O orders before 03:20 PM.

How to Convert Your Position?

Follow the steps below to convert your equity & F&O positions easily on our app:

Click on the ‘Orders’ tab in the bottom menu after logging in.

Go to the ‘Positions’ Tab

Select ‘Convert’ to change your position

How Does It Affect Your Margin Requirements?

If position conversion creates a liability, you will have to add funds to your account to maintain margin requirements before converting your position.

For example, you enter a intraday trade for one share of an ABC company worth ₹4,000. Now, for intraday, you only have to maintain a margin of ₹800 (20% of 4,000). If you convert your intraday position to a delivery order, you will have to pay the full amount of ₹4,000. However, if you convert to a margin (MTF) order, the margin requirement will vary based on the stock and MTF rates applicable.

Conclusion

The position conversion function allows traders the flexibility to convert between several positions while trading in real time based on their incident requirements. These include intra-day to margin, delivery and carry forward positions in real time. It is also critical for traders to keep adequate margin for their conversions as well as be aware of specific cut-off and margin requirements for each conversion type.

FAQs

Can all intraday trades be converted to open positions?

A number of variables, including the segment, order status, margin availability, and cut-off time, affect the ability to open a position from an intraday trade. If fully executed, the majority of intraday equity, futures, and options trades made before the cutoff time can be converted.

What happens if I forget to convert a trade?

At the conclusion of the trading day, the majority of brokers automatically close all intraday positions. This reduces risk, but at the time of auto square-off, it might lead to booking profit or loss at the going market price.

Can I convert a partially executed intraday order to open?

An intraday order can only be converted to its executed quantity. The portion that hasn't been executed is still pending or active and could be cancelled if it expires. The amount that has been executed and converted determines the margin requirements.

Does converting a trade affect my margin requirement?

After conversion, margin requirements might alter. A larger margin is typically needed to convert from intraday to delivery. The applicable SPAN and exposure margins for the particular instrument determine the margin requirement for carryover or margin trades.

Is there a time limit within the trading day to convert a trade?

Conversion of equity intraday positions is possible within the trading day's specified cutoff time. The deadlines for futures and options positions are different. Once the corresponding cut-off times have passed, conversion requests are not accepted.