Margin Trading Facility (MTF)

What is MTF in Stock Market? 

MTF in share market simply means that one buys stocks with the margin and not the total value of the stocks. The investor pays a percentage of the total cost of the stocks, while the broker covers the rest of the amount. These stocks are kept as a collateral. 
At present, as everyone depends on computer technology, MTF trading has become helpful for people who aim to take full advantage of the market. It can be helpful for novices and professional traders. 
Overall, margin trading facility helps the investors to invest in costly shares with limited capital. It is an extensively utilised facility in the business world. 

How Does Margin Trading Facility (MTF) Work? 

Let’s look at a simple example to understand how MTF in trading works: 
Suppose you want to buy shares worth ₹1,00,000. With margin trading funding, you may only need to invest ₹25,000 (25% margin), while the remaining ₹75,000 is funded by BlinkX. 

• You own the shares, but they are pledged with the broker  
• Interest is charged on the funded amount  
• You can hold the position as per the allowed duration  

In many cases, this approach helps investors take larger positions and benefit from price movements. However, it’s important to note that profits and losses both get amplified. 

Features of Margin Trading Facility (MTF) with BlinkX 

• User-friendly platform that ensures ease of trading   
• Availability of a diverse set of stocks for MTF in India    
• Margin is flexible depending on the chosen stock 
• Interest rates are known without any hidden costs 
• Possibility of keeping positions open for a longer period   
• Monitor your MTF position in real time 
• Proper risk management strategy to safeguard investors 
• Suitable for various types of traders 

Eligibility Criteria for availing MTF with BlinkX 

• Must have an active trading and Demat account with BlinkX  
• Completion of KYC verification is required  
• Acceptance of MTF terms and conditions  
• Sufficient margin available in your account  
• Compliance with regulatory guidelines  

Points to be Considered Before Investing with MTF 

• Keep in mind that leverage increases both profits and losses  
• Interest is charged on the borrowed amount  
• Margin shortfall may lead to forced square-off  
• Not all stocks are eligible for MTF trading  
• Market volatility can impact your position significantly  
• Always have a clear plan and risk management strategy  
• Works best when used with discipline and proper research