One trade.
Two people's money.
Is MTF right for you?
- You're okay holding the stock for a few days or weeks — MTF is meant for that, not quick same-day trades.
- You're fine paying daily interest — it adds up every single day, whether the stock goes up or down.
- You can arrange extra money fast — if the stock falls too much, the broker will ask you to add funds or sell your shares.
- You've checked with your broker first — not every stock qualifies for MTF, and how much they lend changes stock to stock.
How MTF actually works — with your numbers
Move the sliders. Watch your own cash turn into a bigger position — and see exactly what carrying that borrowed portion costs.
Illustrative only — actual broker rates, margin slabs, and compounding vary by stock and broker. Not investment or tax advice.
How MTF actually works
Cash
You bring the initial margin — a fraction of the trade value, decided by your broker within SEBI norms.
Margin
This margin absorbs early losses. Depending on the stock, it typically runs 20%–50% of the trade value.
Broker Funds
The broker funds the rest from their own capital, charging daily interest only on this borrowed portion.
Stock Purchased
You now hold the full quantity of shares in your demat — not just the portion you paid for.
Hold Position
MTF positions can usually be carried for extended periods, unlike pure intraday leverage — limits vary by broker.
Pay Interest
Interest accrues daily on the borrowed amount alone, whether the stock is moving in your favour or not.
Sell
When you exit, the sale proceeds first repay the broker's funded amount plus any accrued interest.
Profit / Loss
Whatever remains is yours. Gains are amplified — but so are losses, since the loan is repaid first either way.
Ready to Trade with Leverage?
Get up to 4x buying power on stock trades with Fiscal Forum. Apply for Margin Trading Facility in under 5 minutes.