What is Margin Trading Facility (MTF)?
Have you ever missed a good trading opportunity just because you were low on funds at that moment? If you had Margin Trading Facility (MTF) this would have never happened. MTF allows an investor to buy a stock by paying just a fraction of the total transaction value. The balance amount is funded by the broker (such as Angel One). You can avail up to 4x of your buying power via MTF.
What would you do with increased Buying Power?
Increased Capacity to Trade, Affordable Interest Rates, Super Convenient Process— Margin Trading Facility is a real gift for the interested investor. Here is a starter kit to help you get more out of your buying power.
What is MTF Pledge?
An important step of availing MTF is completing the Pledge Request. This is a mandatory process introduced by SEBI. When you buy shares under Margin Trading Facility, you have to pledge those shares to continue holding the position. This process must be completed by 9:00 pm on the same day. In case you fail to do so, your shares will be squared-off on T+7 day.