Margin Trading Facility (MTF) is a process where you can buy stocks by putting in a part of the money, and we lend you the remaining amount. Through this facility, you can invest 50% of your amount in Equity Delivery and the remaining 50% will be funded by us.
Let us imagine you are looking to purchase shares worth Rs. 1,00,000, but have only Rs. 50,000 in hand. If you opt for the Margin Trading Facility, Upstox will provide you with the remaining 50%, which is Rs. 50,000.
But before you take part in MTF, make note that you will receive two times the margins on all CNX200-listed stocks. The entire stock list is available in our Dropbox with the name MTF File.
You can check the list of stocks through this Dropbox link.
List of charges for Margin Trading Facility:
- A charge of Rs. 20 per day will be levied for slabs of Rs. 50,000 taken as MTF.
- For every order executed, a brokerage amount of Rs. 20 or 0.10% will be charged on both sides.
- Depository Participant (DP) charges of Rs. 18.50 plus GST will be applicable while selling the MTF position.
- Auto square-off charges will be applicable, which is Rs. 23.60 (including GST).
- The MTF facility is only available for 30 days. On the 30th day, the position will be squared off by the RMS team at 2:30 PM.
The Margin Trading Facility can enable you to invest more even with limited cash at hand and empower you to make informed decisions while taking advantage of lucrative market opportunities.
You can set up your MTF account within minutes with Upstox.