1kViews
What are the interest charges?
The interest rate on the amount funded by the broker is 0.05% per day (18.25% annually) . The charges are applied starting from the day after the transaction (T+1) and continue until the position is cleared.
Interest is calculated everyday but billed weekly and will appear in your ledger at the end of each week.
Example Scenario:
Let’s say you have ₹5000 in your trading account, and the stock you wish to buy is priced at ₹5000 per share. If the stock qualifies for a 3x margin in MTF, you can buy up to 3 shares with your ₹5000.
Here’s how it works:
Total cost for 3 shares: ₹5000 × 3 = ₹15,000
Your contribution (margin): ₹5000 (33.33%)
Amount funded by the broker: ₹15,000 (total) - ₹5000 (your margin) = ₹10,000 (66.67%)
Interest will be charged on the ₹10,000 funded by the broker at a rate of 0.05% per day.
Additionally, You can use the pledged margin for Derivatives such as futures (open long or short positions in index or stock futures) and options (write or buy options contracts for both index and stocks). Customers can use their shares as collaterals to use against 100% margin requirement in derivative for carry-forward positions. In carry forward, we will only charge a nominal interest of 0.04% per day.
It can be used for Intraday trades , providing margin funding for equity and derivatives trading. Customers can pledge their approved shares and use as collaterals to trade in Intraday. Customers need not have any cash and they can use their collaterals up to 100% of the margin requirement. If the customer trade in Intraday we will charge a nominal interest of 0.03% per day.
Interest is calculated everyday but billed weekly and will appear in your ledger at the end of each week.
Example Scenario:
Let’s say you have ₹5000 in your trading account, and the stock you wish to buy is priced at ₹5000 per share. If the stock qualifies for a 3x margin in MTF, you can buy up to 3 shares with your ₹5000.
Here’s how it works:
Total cost for 3 shares: ₹5000 × 3 = ₹15,000
Your contribution (margin): ₹5000 (33.33%)
Amount funded by the broker: ₹15,000 (total) - ₹5000 (your margin) = ₹10,000 (66.67%)
Interest will be charged on the ₹10,000 funded by the broker at a rate of 0.05% per day.
Additionally, You can use the pledged margin for Derivatives such as futures (open long or short positions in index or stock futures) and options (write or buy options contracts for both index and stocks). Customers can use their shares as collaterals to use against 100% margin requirement in derivative for carry-forward positions. In carry forward, we will only charge a nominal interest of 0.04% per day.
It can be used for Intraday trades , providing margin funding for equity and derivatives trading. Customers can pledge their approved shares and use as collaterals to trade in Intraday. Customers need not have any cash and they can use their collaterals up to 100% of the margin requirement. If the customer trade in Intraday we will charge a nominal interest of 0.03% per day.
Last updated: 5 Months Ago
1kViews
Margin Trading Facility
Where can I view my MTF positions?- What are the MTF pledge charges?
- How is the margin Calculated?
- What is the square-off process in Margin Funding?
- How can I use Margin Funding for derivative trades?
- What are the eligible stocks for MTF?
- How does the Margin Trading Facility work?
- Step-by-Step Guide to Applying for MTF
- What Can Be Pledged to Get Margin?
