Margin Trading Facility
Delivery-Based Trading with Leverage
Margin Trading Facility (MTF) is a delivery-based trading facility that lets you hold positions for a longer duration without deploying 100% capital. It allows you to leverage your investments by paying only a fraction of the total trade value as margin.
With interest-based funding and minimal paperwork, MTF empowers you to maximise your investment strategy. You can take delivery of shares worth more than your available capital and hold them as long as you maintain the required margin.
This facility is ideal for investors who have a strong conviction on a stock but may not have the full capital to invest at that moment. MTF bridges the gap between opportunity and capital availability.
MTF Advantages
Key benefits of trading with margin.
Hold Longer
Hold delivery positions for extended periods without deploying 100% capital upfront.
Interest-Based Funding
Pay interest only on the funded amount for the duration you hold the position.
Minimal Paperwork
Simple activation process with minimal documentation required to start using MTF.
Leverage Positions
Take larger positions with a fraction of the total value, amplifying your investment potential.
Delivery-Based
Unlike intraday leverage, MTF positions result in actual delivery of shares to your Demat account.
Wide Stock Coverage
MTF is available on a wide range of approved stocks across BSE and NSE exchanges.
Margin Trading Process
Simple steps to start margin trading.
Place Order
Select a stock from the approved MTF list and place a buy order specifying the margin trading option.
Margin Debited
Only the required margin amount is debited from your account. The remaining amount is funded by the broker.
Hold Position
Hold your delivery position for as long as you like while maintaining the required margin. Interest accrues on the funded amount.
Square Off / Convert
Sell your shares when ready or convert to a regular delivery position by paying the remaining amount.
Risk Disclaimer
Please read these important risk factors before using MTF.
Market Risk
Margin trading amplifies both gains and losses. If the stock price falls, your losses will be magnified relative to your initial margin investment.
Margin Call Risk
If the value of your holdings falls below the maintenance margin, you may receive a margin call requiring you to deposit additional funds or risk liquidation.
Interest Cost
Interest is charged on the funded amount for the entire holding period. This cost should be factored into your return calculations.
Forced Liquidation
If you fail to meet a margin call, the broker may liquidate your positions to recover the funded amount, potentially at unfavourable prices.