Learn all about Margin trade facility (MTF) in the stock market in just 30 seconds! Watch this quick video to understand the basics of margin trading and how it works.
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MTF stands for Margin Trading Facility, a service offered by stockbrokers that allows investors to buy stocks by paying only a part of the total value (the margin). The broker funds the remaining amount. It's essentially leveraged buying—you can take larger positions than your cash balance allows. This facility is mostly used by active traders looking to take advantage of short-term price movements. However, since you're borrowing money, interest is charged on the borrowed amount until it's repaid.
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You pay a margin amount (a percentage of the trade value), and your broker funds the rest. The bought shares are pledged with the broker as collateral.
Buy more with less capital
Opportunity to amplify gains
Useful for short-term trades and swing positions
Only SEBI-approved stocks listed under the MTF segment are allowed. These are usually liquid, large-cap stocks.
No. The shares bought under MTF are automatically pledged by the broker as collateral.