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How does Margin Trading Facility works?

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*Margin available upto 5x on 1300+stocks

Margin Trading Facility (MTF) is an exchange-approved product wherein individuals can purchase stocks by paying only the initial margin, with the remaining amount being funded by Kotak Neo. One can either keep the position open as long as they want or can take delivery of the stock.

The interest charges are as low as 0.027% per day, which are applied from T+1 day onwards. These charges vary for all users based on the brokerage plan they have selected.

With the introduction of the pledge model in September 2020, it has become mandatory to pledge stocks purchased under the Margin Trading Facility.To hold your MTF position for as long as you want, user are required to pledge the stocks purchased under MTF on T Day on the link received from NSDL.

Cash, existing stocks, and ETFs kept in their Demat account can be used as margin post pledging.

A margin trading facility, such as MTF, can be powerful if you aim to maximize the potential of your business. This feature makes it possible to place more bets on the market than your account balance usually is able to allow, which can result in a higher profit margin by increasing purchasing power.

Disclaimer

Investments in securities market are subject to market risks, read all the related documents carefully before investing. Brokerage will not exceed SEBI prescribed limit. The securities are quoted as an example and not as a recommendation. SEBI Registration No-INZ000200137 Member Id NSE-08081; BSE-673; MSE-1024, MCX-56285, NCDEX-1262. Read Disclaimer here

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