4X Your Trading Funds
With Margin Trade Financing

Activate Margin Trading Facility

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Why Choose Bajaj Broking?

  • intrest-PA

    Interest starting with just 10.75% p.a.

  • wide-range

    Wide range of approved MTF scripts

  • pre-approve

    Pre-approved limit up to 150 Cr. per account

  • no-doc.png

    No documentation required

  • call-and-trade

    Call & Trade Support

  • pledge-exist

    Pledge existing shares as collateral to pay margins

What is Margin Trading Facility?

Ever found a great opportunity to make money by buying stocks but didn't have enough cash? Imagine if you could still make that investment even with limited funds. That's where our Margin Trading Facility (MTF) comes in. In order to invest, let's first understand the Margin Trade Meaning and how it works.

MTF lets you buy stocks by paying only a small part of the total value, and Bajaj Broking covers the rest. It's like borrowing money from us to make the investment. With MTF, you can make trades worth up to 4 times more than your buying power. Let's say you want to buy shares, but you only have a little money. Using the Margin Trade Facility, we provide you extra funds so you can buy the shares you want. You pay back the borrowed money later with a small interest fee. It's like getting a boost to make bigger investments, even if you don't have all the cash up front.

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How Margin Trading works?

The best way to understand about Margin Trading is to see how it might play out in the real world. Say for instance:

Your Account Balance

20,000

Using MTF you can buy up to 4X

80,000

(20000*4)

=

Thus your enhanced buying capital is now

1,00,000

(Total Amount)

Key features and benefits of Margin Trading

  • Higher returns: Improve the percentage return on the capital deployed with minimum capital allocation.
  • Enhance the buying power: Can avail up to 4 times the position of the contribution.
  • Short-term gains: Ideal for traders who are looking for short-term gain.
  • Leveraging on stocks: Utilization of securities available in the Demat account, (using shares as collateral).
  • SEBI regulated: According to SEBI regulations, only corporate brokers can offer MTF to their clients. Securities allowed under MTF are pre-defined by SEBI and other exchanges and are modified on a timely basis.
  • Bet on bigger trades: MTF allows you to bet on bigger trades than you would with available funds with you as you can leverage your position up to 4X with the borrowed amount. Also, the MTF limit available for the trader depends on the type of asset being traded and the trade value.
  • Higher profit potential with low investments: You can purchase more shares using MTF, hence more profits provided on your trade go right as per your analysis and determined trend.
  • Safety: SEBI closely monitors this, and it continuously frames and amends the rules in the interest of traders.

How to avail Margin Trade Facility?

  1. 1. Login into the Bajaj Broking Mobile App

  2. 2. Select Your Preferred Stocks*

  3. 3. Click on BUY

  4. 4. Enter Quantity, Select product type as MTF

  5. 5. Click on Confirm Buy

  6. 6. Pledge your MTF stock before 11:59 PM on the day of purchase

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What is MTF Pledge?

Margin Pledge is a mandatory process introduced by SEBI. When you purchase shares using the Margin Trading Facility (MTF), it's compulsory to pledge those shares to maintain your position. This pledge must be completed on the same day of the share purchase. Failure to fulfill this requirement will result in the forced square-off of your shares after a period of seven days from the transaction date (T+7 days).

Here is how you can complete the MTF Pledge process:

  1. Once your MTF request is approved, check your Email/SMS for notification regarding the initiation of the MTF Pledge request

  2. Input PAN or Demat Account Details

  3. Generate a one-time password (OTP) for authentication.

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  1. Click the CDSL link in the Email/SMS (You will be redirected to CDSL’s website)

  2. Select Stocks to Pledge

  3. Enter the received OTP to Authorize and complete the process

Check how Margin Trade Facility works while you buy stocks

MTF Calculator

Our interactive online margin calculator provides you with the latest margin for each tradable security offered by Bajaj Broking. This dynamic tool allows you to make informed decisions by estimating stock margins and leverages upfront before you trade or invest in real-time. Explore our MTF Calculator for a comprehensive understanding of the financial aspects before you trade or invest.

Interest applicable on Margin Trading position

The interest applicable on Margin Trade Financing is generally fixed which depends on your Demat account subscription pack. The interest calculation again varies from broker to broker but in general rule, the calculation is mentioned below:

Annual Interest Rate * MTF Position Created= Output * Term of the Loan

Illustration: Let's say you have availed the MTF for a period of 24 days, then the amount will be multiplied by 24/365 to get the payable amount.

With Bajaj Broking, avail MTF at one of the lowest interest rates.

Risks Involved in Margin Trading

  • Minimum balance required: You are asked to maintain a minimum balance in your Demat account all the time. If in case your balance is below the minimum balance then you would be asked to maintain sufficient balance and if you failed to do so then you would be forced to sell the shares to maintain balance.
  • Liquidation: If you fail to keep up to the margin trade agreement, then the brokers have the right to initiate action by liquidating your assets to recover the sum.
  • Losses can be magnified: Just as the MTF facility offers the possibility to multifold profits in the markets, in the same way, the losses incurred can also be multifold which can lead to erosion of the entire collateral amount. Therefore, it is very important to assess as to how much risk you can take in the market.

Seize Good Trading Opportunities with Margin Trading Facility

Download Bajaj Broking and avail Now

trade

Frequently Asked Questions(FAQ’s)

FAQ’s

No, Margin Trade Financing is a funding system which doesn’t give an option to execute Intraday trades. Intraday trading cannot be done under Product Code – MTF.

Interest on MTF depends on broker to broker. With Bajaj Broking, you can avail MTF at one of the Lowest Interest Rates.To avail MTF and know more, visit: https://samadhan.bajajfinservsecurities.in/margin-trading/sub/mtf-facility

Margin Trade Financing is a facility where Investors get funded by the stockbroker in order to increase their buying power. The investors or traders can buy stocks which they cannot afford by paying a small margin amount of the actual value, it can be through cash or keeping securities as collateral. The margins later are settled when you square-off your position.

When you avail MTF from a SEBI registered stockbroker, you are required to maintain a minimum balance in your trading account. If you do not maintain the balance, your stockbroker can close your open positions inn order to bring in the minimum value which is referred as forced sale or liquidation.

Earlier, trading under MTF was allowed only with cash and providing shares as collateral was not in the picture. However, the relaxation of allowing investors to create position under the margin trading by furnishing shares as security is given by SEBI.

  • If the margin trade agreement is not kept properly, the authorised stockbroker have the right to take action against the collaterals of Investors/Traders
  • When you avail MTF, you are supposed to maintain a minimum balance in your trading account all the time. If you fail to maintain the same, the you would be forced to sell some of your securities to maintain the balance to avoid the penalty
  • Trading in margin could be profitable and sometimes lead to losses as well

  • By availing MTF, an investor or trader can enhance their buying power up to 4X times
  • It improves the rate of return on the funds invested of a trader or investor
  • The securities which are lying in the Demat account can be used as collaterals

To activate Margin Trading Facility (MTF) all you need to do is submit your POA(Powe Of Attorney) filled and signed.

what is POA? Click here to check out:

The benefits of Margin Trade Facility with Bajaj Broking are:

  • Hold position for up to 365 days
  • Pay interest charges only for the days used
  • Portfolio diversification
  • Low-interest rates
  • Increased investments capacity

No, you do not need to open two DPs to avail MTF facility.

To activate the Margin Trading Facility, all you need is to submit a Power Of Attorney (POA) hard copy.

No, you will not get the benefit of any MTM gain on your MTF position.

Interest will be charged from T+1 day on the Total MTF position created by the clients.

This facility is for both online accounts as well as offline accounts.

Bajaj Broking provides funding for the shares bought by you, you only need to pay a part of the total value of the shares bought. For Eg. : If “A” buys Infosys worth Rs.1 Lakhs, then he is supposed to pay 25%* i.e.Rs.25 thousand and a balance of Rs.75 thousand will be paid by Bajaj Broking on behalf of A. *Please Note: % of the Margin may vary from time to time and stock to stock.

  • Freedom Pack: 18% p.a.
  • Professional Pack: 12.5% p.a.
  • Bajaj Privilege Club (BPC) one of the lowest interest rates.

The margin requirement to trade under MTF differs from scrips to scrips.

Yes, one can transfer stocks to fulfill the margin requirements.

If sufficient margin is not maintained, then you will not be able to buy any shares under Margin Trading Facility.

If in case margin falls below the minimum required margin, then will make a Margin Call and the position can be liquidated. You will be notified of the same.

If you are not able to meet the Margin call or fail to transfer funds then, Bajaj Broking can liquidate the securities. When margins are not in place then Margin call/ liquidation can be made at any point in time.

A detailed report giving the Margin Trading Facility positions and the related Margins is available under Margin Report.

While you are place your order, select “Margin” as the “order Type”.

The brokerage charge depends on the subscription pack you opted for.

No, Margin Trade Facility is not for Derivative trading, this facility is only for Cash segment.

Yes, DP charges will be applicable while using MTF facility, as per the normal schedule.

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