Margin Trading Facility
Amplify Your Trading Potential with 4X Margin
Too many ideas but too little capital?
Boost your buying power with Margin Trading Facility (MTF) and multiply your trading potential without any additional cash outflow.
Don’t ever miss out on an opportunity in the markets with this Buy Now, Pay Later facility
MTF enables you to increase your buying power in the stock market. Instead of paying the full transaction value upfront, you pay only a fraction as “margin.” The margin percentage required can vary based on factors like risk and the current value of your portfolio.
The remaining amount is loaned to you by PL at a pre-determined interest rate, giving you the advantage of holding larger positions and enhancing your investment opportunities.
Simply convert the position into delivery by paying back the debit whenever you feel like, and the interest payment stops.
How Does MTF Work?
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₹20,000
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MTF
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₹40,000
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₹60,000
Features & Benefits of MTF
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Enhance your buying power instantly
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Choose from a broad range of approved stocks
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Up to 4 times the value of your pledged collateral
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No special signups. Just a click of a button to get started
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Hold on to debit positions for up to a year
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Our MTF clients get access to our research-backed MTF picks
Start MTF in just 5 steps
Enable MTF through PL
DigiTrade App
Place an Order for your
desired stock
Just like a regular Order,
instead of Intraday or
Delivery, select MTF as the
product type
Complete the transaction
& hold the MTF stock for
a year with up to 4X leverage
Easily convert MTF positions to
Delivery and vice versa
Read more about MTF here
Read for free!How to Activate Margin Trading Facility
You can easily activate MTF through the following options
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- 01 Navigate to Products
- 02 Apply MTF
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- 01 Go to Forms
- 02 Apply MTF
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01
Complete the form
via our offices
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01
Complete the form
As per guidelines, you need to pledge the shares purchased through MTF if you wish to hold your position under this facility and not a normal holding. This pledge request must be made before 9 PM on the day of the purchase. Failure to do so may result in us squaring-off the position in 4 days.
Similarly, clients are expected to ensure that the margin deposit is always adequate and there is no shortage. We send an email at the end of the day, clarifying the position to each MTF client.
Please do familiarise yourself with the rights and obligations under this facility before utilising it.
Clients may view the haircuts applicable and buy margin required at PLClients/ Products/ MTF.
FAQs on Margin Trading Facility (MTF)
MTF enables you to increase your buying power in the stock market. Instead of paying the full transaction value upfront, you pay only a fraction as “margin.” The margin percentage required can vary based on factors like risk and the current value of your portfolio. The remaining amount is loaned to you by PL at a pre-determined interest rate, giving you the advantage of holding larger positions and enhancing your investment opportunities. Simply convert the position into delivery by paying back the debit whenever you feel like, and the interest payment stops.
When using MTF, you only need to pay the margin (a portion of the total transaction value), and PL lends you the remaining funds. You can hold these positions for extended periods, converting them into delivery by settling the debit whenever needed.
MTF enhances your trading power by 4x the value of the pledged collateral, enables you to hold on to debit positions for up to a year, and ensures that you never miss an opportunity in the market.
Since MTF is a leveraged product, it amplifies both profits and losses. However, it’s definitely a better way to leverage instead of derivatives for multiple reasons. This includes the fact that at the end of the day, you have bought Group 1 securities in delivery. Ensure that you maintain adequate margin levels and ensure timely pledging of shares to avoid position square-offs.
