Margin Trade Facility (MTF)

Margin Trade Financing is a facility offered to the investors or traders to increase their buying powerfor 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.

Features & Benefits

Higher Returns:

Improve the percentage return on the capital deployed with minimum capital allocation.

Enhance the buying power:

Can avail upto 3.5 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 Demat account (using shares as collateral).

SEBI Regulatuions:

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.

Benefits you get with us

  • Hassle free documentation
  • Easy accessibility on the platform
  • MTF Limits up to ₹ 20crs.
  • Avail MTF at one of the lowest interest rates
  • Get up to 3.5X times leverage on cash & shares
  • Call & Trade Support
  • Dedicated Relationship Manager

Interest Applicable on Margin Trading Positions

  • The interest applicable on Margin Trade Financing are generally fixed by the stockbrokers and the rate of interest depends on broker to broker. The interest calculation again varies from broker to broker but in general rule, the calculation is mentioned below:
  • Annual Interest Rate * Amount Borrowed = Output * Term of the Loan
  • Illustration: Let’s say you have availed the MTF for a period of 24days, then the amount will be multiplied by 24/365 to get the payable amount.
  • With BFSL, avail MTF at one of the lowest interest rates.

Margin Trading 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 Financial Securities, 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 3.5X 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

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