MTF
Margin Trade Facility (MTF)
Margin Trade Financing (MTF) allows day traders to trade for bigger deals than the capacity at a point in time using the borrowed funds from the broker. It is based on collateral loans against margin in cash or demat securities as per reforms by the Securities and Exchange Board of India (SEBI). In order to invest, let’s first understand the Margin Trade Meaning and how it works.

Explanation on Margin Trading Facility
MTF is the facility of trading with more than the available funds. Margin trade meaning can be understood as the availability of loans for intraday traders with stockbrokers. When you trade using Margin Trade Financing, your stockbroker funds your trade. You can buy securities by paying a part of the actual trade value. As per the SEBI, you can pay this margin amount in cash or in the form of demat securities.
Margin Trade Financing is a facility offered to the investors or traders to increase their buying power for shares and securities by just paying a small amount of total value. MTF is simply a leveraged position in the market. The investor can take higher value of position by paying only a fraction of the total transaction value called margin. Margin given by the client can be in the form of cash or shares as collateral. The rest amount gets funded by the stockbroker at a nominal Interest rate.
Main advantage of Margin Trading Facility
The advantage is when you trade, you can typically borrow 50% of the cost of any new scrip. Which means you can buy up to 2 times as many shares as in a cash account, and this might let you take advantage of short-term market opportunities without selling any of your existing positions.
Benefits of Investing in Margin Trading Facility
- Increase your Returns as a result of increased buying potential through MTF
- Enhance the buying power : Can avail upto 5 times the position of the contribution
- Rapid short-term gains have also been witnessed for some companies
- Advantageous for investors who want to profit from price movements in the short term
- Improve the percentage return on capital deployed / or initial capital
- Invest & Trade in more than 950 scrips with Margin Trading Facility
- You can pledge your holding to get MTF benefits easily
- No need for separate unplugging, Sell from MTF Order window instantly
- Safety : SEBI closely monitors this, and it continuously frames and amends the rules in the interest of traders.
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Paperless journey
Paperless journey