Margin Trading Facility (MTF)

Get 5X Leverage at Just 0.049% Interest per Day

Buy Now, Pay Later. Up to 80% margin funding on 500+ stocks!

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MTF for Everyone!

Swing Traders
BTST Traders
Long-Term Investors

How MTF Works

You Pay

Pay

You can buy stocks worth

*calculation applicable for stocks with 5X leverage

List of Available Stocks with MTF

Showentries

Trade big with margin trading

Use your stocks as margin

Findoc funds the rest

Interest as low as 0.049% per day on funded amount

Avail MTF with StockZ in 3 simple steps

01Select stock and enter quantity
02Select Pay Later (MTF)
03Place your order

What is Margin Trading Facility (MTF)?

Margin Trading Facility (MTF) allows traders to buy more shares than the money they have in their account. It works like borrowing funds from the broker to take bigger positions in the stock market. This helps traders grab opportunities without waiting to arrange extra cash. However, the borrowed amount must be repaid within a given time along with applicable charges. MTF can be ideal for short-term opportunities but requires discipline, as both profits and losses can increase.

How Does Margin Trading Facility Work?

Margin Trading Facility works by letting you pay only a part of the total trade value while your broker funds the rest. For example, if a stock costs ₹1,00,000 and the broker offers 5x leverage, you may only need to pay ₹20,000. The broker funds the remaining ₹80,000, allowing you to buy the stock. If the stock price rises, you gain profit on the full value. But if it falls, your losses are also on the full amount, not just your margin. This makes MTF powerful but may include some risk. Proper risk control is essential when using this facility.

Features of Margin Trading Facility (MTF)

Leverage on Investment: Traders can buy shares by paying only a portion of the total value, while the broker funds the rest.
Approved Stock List: Selected stocks approved by the exchange and broker are eligible under MTF.
Regulated by SEBI: The facility is offered as per SEBI guidelines, ensuring investor protection.
Interest on Borrowed Funds: Brokers charge interest on the borrowed amount, payable along with dues.
Collateral Support: Cash, fixed deposits, or approved securities can be used as collateral.
Risk Monitoring:Brokers constantly monitor margins and issue alerts in case of shortfalls.

How to Start Trading Using Margin Trading Facility (MTF) with Findoc

Open a Trading and Demat Account
Start by opening your demat account with Findoc and completing KYC.
1
Activate Margin Trading Facility
Request your broker to enable MTF after agreeing to the terms and conditions.
2
Deposit Initial Margin
Transfer funds that will act as your margin for trades.
3
Choose Stocks for MTF
Check the list of approved stocks available under the margin trading facility.
4
Place Your Trade
Select the stock, enter the quantity, and click on place order. The broker will fund the remaining amount.
5
Monitor Positions
Keep an eye on price movement and margin requirements. If prices fall, you may need to add more funds.
6

By following these steps, you can begin trading under MTF in a structured and safe manner.

Advantages of Using Findoc Margin Trading Facility

Enhanced Buying Power
With Findoc’s MTF, you can purchase more stocks with limited funds, increasing your potential gains.
Opportunity to Capture Market Moves
MTF can help you take advantage of short-term trends or sudden opportunities without arranging extra cash immediately.
Diversification Benefits
Helps in investing in multiple stocks or sectors simultaneously, even with smaller capital, reducing dependency on a single stock.
Extended Holding Period
Unlike normal margin trades, MTF helps you carry forward positions for longer, giving flexibility in managing investments.
Convenient Collateral Options
Use shares, cash, or other approved securities as collateral, making it easier to maintain positions.
Regulated and Secure
Being a SEBI-compliant facility, Findoc helps in ensuring transparency, safety, and fair dealing for the clients.
Simple Process
Easy online activation and a user-friendly interface make MTF trading smooth and hassle-free.

Potential Risks to Understand Before Using Margin Trading

Amplified Losses
Losses are calculated on the full trade amount, not just the margin, making risks higher.
Margin Shortfalls
Falling stock prices may trigger a margin call, requiring you to deposit more funds quickly.
Interest Costs
Regular interest is charged on the borrowed amount, which can reduce overall profit if trades don’t perform well.
Market Volatility
Sharp price movements can result in sudden losses, especially when leverage is high.
Limited Stock Options
Only selected, exchange-approved stocks can be traded under MTF.
Psychological Pressure
Constant monitoring of leveraged positions can cause stress, leading to emotional trading decisions.
Not Suitable for All
MTF is ideal for experienced traders, as beginners may find it difficult to manage risks.

Tips for Margin Trading

Start Small: Begin with small trades until you understand the process.
Maintain Extra Funds: Keep additional cash ready to meet margin calls.
Avoid Overleveraging: Avoid using the maximum leverage, even though it is available.
Track Interest Costs: Track interest charges before calculating profit.

Stay Updated: Follow news, corporate actions, and market updates to make informed decisions.
Diversify your trades: Avoid putting all your borrowed funds into a single stock or sector.
Set stop-loss orders: Protect yourself from large losses by fixing exit points in advance.
Have a Clear Plan: Decide entry and exit levels before placing trades.

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