Margin Trading Facility is 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 a 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.
Features & Benefits
Improve the percentage return on the capital deployed with minimum capital allocation.
Enhance the buying power
Can avail upto 4X 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)
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.
Under the Buy Now Pay Later (MTF) Product, the client can purchase the shares against Margin and hold them for up to 180 days without full payment and for normal trading, you need to pay for deliveries within T+2 days.