{"id":17603,"date":"2026-09-06T22:59:06","date_gmt":"2026-09-07T05:29:06","guid":{"rendered":"https:\/\/shoonya.com\/blog\/?p=17603"},"modified":"2026-09-10T01:07:00","modified_gmt":"2026-09-10T07:37:00","slug":"margin-trading-facility","status":"publish","type":"post","link":"https:\/\/shoonya.com\/blog\/margin-trading-facility\/","title":{"rendered":"Margin Trading Facility (MTF): The Complete Guide for Investors"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_87 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\"><p class=\"ez-toc-title\" style=\"cursor:inherit\"><\/p>\n<\/div><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/shoonya.com\/blog\/margin-trading-facility\/#How_MTF_Works_With_an_Example\" >How MTF Works With an Example<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/shoonya.com\/blog\/margin-trading-facility\/#Which_Stocks_Are_Eligible_for_MTF\" >Which Stocks Are Eligible for MTF?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/shoonya.com\/blog\/margin-trading-facility\/#Who_Can_and_Cannot_Use_MTF\" >Who Can (and Cannot) Use MTF?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/shoonya.com\/blog\/margin-trading-facility\/#Shoonya_MTF_Pricing_Complete_Breakdown\" >Shoonya MTF Pricing: Complete Breakdown<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/shoonya.com\/blog\/margin-trading-facility\/#Shoonya_MTF_Interest_Rate_Structure\" >Shoonya MTF Interest Rate Structure<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/shoonya.com\/blog\/margin-trading-facility\/#How_Shoonya_MTF_%E2%82%B90_Square-off_Charges_Matter\" >How Shoonya MTF \u20b90 Square-off Charges Matter<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/shoonya.com\/blog\/margin-trading-facility\/#How_Interest_Is_Calculated\" >How Interest Is Calculated<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/shoonya.com\/blog\/margin-trading-facility\/#Shoonya_MTF_vs_Intraday_vs_Delivery_CNC_Full_Comparison\" >Shoonya MTF vs Intraday vs Delivery (CNC): Full Comparison<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/shoonya.com\/blog\/margin-trading-facility\/#How_Margin_Requirement_Varies_by_Stock\" >How Margin Requirement Varies by Stock?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/shoonya.com\/blog\/margin-trading-facility\/#Why_Is_DDPI_or_POA_Required\" >Why Is DDPI or POA Required?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/shoonya.com\/blog\/margin-trading-facility\/#How_to_Place_MTF_Order_on_Shoonya\" >How to Place MTF Order on Shoonya<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/shoonya.com\/blog\/margin-trading-facility\/#How_to_Exit_MTF_Position_on_Shoonya\" >How to Exit MTF Position on Shoonya<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/shoonya.com\/blog\/margin-trading-facility\/#Additional_MTF_Features_on_Shoonya\" >Additional MTF Features on Shoonya<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/shoonya.com\/blog\/margin-trading-facility\/#How_to_Calculate_Your_MTF_Cost_via_Shoonya_Calculator\" >How to Calculate Your MTF Cost via Shoonya Calculator<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/shoonya.com\/blog\/margin-trading-facility\/#Risks_of_MTF_Trading\" >Risks of MTF Trading<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/shoonya.com\/blog\/margin-trading-facility\/#What_is_MTF_FAQS\" >What is MTF : FAQS<\/a><\/li><\/ul><\/nav><\/div>\n<nav style=\"--separator: &quot;\/&quot;\" class=\"wp-block-breadcrumbs\" aria-label=\"Breadcrumbs\"><ol><li><a href=\"https:\/\/shoonya.com\/blog\/\">Home<\/a><\/li><li><a href=\"https:\/\/shoonya.com\/blog\/product-update\/\">Product Update<\/a><\/li><li><span aria-current=\"page\">Margin Trading Facility (MTF): The Complete Guide for Investors<\/span><\/li><\/ol><\/nav>\n\n\n<meta charset=\"UTF-8\">\n<meta name=\"viewport\" content=\"width=device-width, initial-scale=1.0\">\n<title>Shoonya MTF: Margin Trading Facility Explained<\/title>\n<link rel=\"preconnect\" href=\"https:\/\/fonts.googleapis.com\">\n<link rel=\"preconnect\" href=\"https:\/\/fonts.gstatic.com\" crossorigin=\"\">\n<link href=\"https:\/\/fonts.googleapis.com\/css2?family=Figtree:wght@300;400;500;600;700;800&amp;display=swap\" rel=\"stylesheet\">\n<style>\n  :root{\n    --copper:#EFA145;\n    --copper-deep:#D17800;\n    --steel:#424242;\n    --forest:#082F25;\n    --forest-2:#0C3D30;\n    --fresh:#6CE890;\n    --green:#45D965;\n    --mint:#EEFFF2;\n    --mint-2:#F6FFF9;\n    --line:#DDEBE3;\n    --line-soft:#E8F3EC;\n    --red:#C11414;\n    --ink:#2B342F;\n    --grey:#5F6B65;\n    --maxw:820px;\n  }\n  *{box-sizing:border-box;}\n  body{\n    margin:0;font-family:\"Figtree\",system-ui,-apple-system,sans-serif;\n    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font-size: 13px; font-weight: 600; padding: 7px 16px; border-radius: 20px; }\n  .final-cta a { display: inline-flex; background: var(--copper); color: var(--forest); font-family: 'Bricolage Grotesque', sans-serif; font-weight: 800; font-size: 15px; padding: 14px 32px; border-radius: 8px; text-decoration: none; transition: opacity 0.15s; }\n  .final-cta a:hover { opacity: 0.9; }\n\n  \/* DISCLAIMER *\/\n  .disclaimer { font-size: 12px; color: var(--grey); line-height: 1.7; padding: 16px 20px; background: #F4F4F0; border-radius: 8px; border: 1px solid #E4E4DC; margin: 16px 0; }\n\n  \/* FAQ accordion *\/\n  .faq{display:flex;flex-direction:column;gap:12px;margin:6px 0 22px;}\n  .faq-item{\n    background:var(--mint-2);border:1px solid var(--line);border-radius:14px;\n    overflow:hidden;transition:border-color .2s ease, box-shadow .2s ease;\n  }\n  .faq-item:hover{border-color:var(--copper);box-shadow:0 2px 10px rgba(239,161,69,0.18);}\n  .faq-item[open]{border-color:var(--copper);box-shadow:0 2px 10px rgba(239,161,69,0.18);}\n  .faq-q{\n    list-style:none;cursor:pointer;display:flex;align-items:center;justify-content:space-between;\n    gap:16px;padding:17px 20px;font-weight:700;color:var(--forest);font-size:16px;\n  }\n  .faq-q::-webkit-details-marker{display:none;}\n  .faq-q::marker{content:\"\";}\n  .faq-icon{\n    flex:0 0 auto;width:26px;height:26px;border-radius:50%;background:var(--copper);color:#fff;\n    display:flex;align-items:center;justify-content:center;font-size:16px;font-weight:800;line-height:1;\n    transition:transform .2s ease, background .2s ease;\n  }\n  .faq-item[open] .faq-icon{background:var(--forest);transform:rotate(45deg);}\n  .faq-a{margin:0;padding:0 20px 18px;color:#33413B;font-size:15.5px;line-height:1.6;}\n\n\n\n\n\n\n\n\n  @media (max-width: 640px) {\n    table { font-size: 13px; }\n  }\n<\/style>\n\n\n\n\n\n    <div class=\"body\">\n      <p>Margin Trading Facility, commonly known as MTF, is a SEBI-regulated service that lets you buy stocks by paying only a portion of the total trade value up front. Your broker funds the remaining amount and charges a small daily interest on the funded portion until you sell.<\/p>\n      <p>Think of it like a short-term loan from your broker, secured against the shares you&#8217;re buying. You get immediate ownership of the shares, but you owe the broker the funded amount plus daily interest until you close the position.<\/p>\n\n      <div class=\"quote\">\n        <p><strong>Definition:<\/strong> With MTF, you can buy \u20b91,00,000 worth of stock by paying around \u20b933,333 upfront. Shoonya funds the remaining amount of around \u20b966,667, and the charges start at \u20b95 per day for every \u20b910,000, or part thereof, funded. You keep the shares and the full price appreciation, but pay interest until you sell.<\/p>\n      <\/div>\n\n      <p>MTF is governed by SEBI&#8217;s margin trading guidelines and is available only on approved stocks (NSE Group 1 securities). Unlike intraday trading, MTF positions can be held overnight and for as long as you want.<\/p>\n\n      <h2><span class=\"ez-toc-section\" id=\"How_MTF_Works_With_an_Example\"><\/span>How MTF Works With an Example<span class=\"ez-toc-section-end\"><\/span><\/h2>\n      <p>Here is how an MTF trade works from start to finish:<\/p>\n      <ol class=\"steps\">\n        <li>\n          <strong>You Pay the Margin (Your Contribution)<\/strong>\n          <p style=\"margin:0;\">You bring a portion of the total trade value, around 33.33% for stocks eligible for 3X buying power. This is called the initial margin.<\/p>\n        <\/li>\n        <li>\n          <strong>Broker Funds the Rest<\/strong>\n          <p style=\"margin:0;\">Shoonya funds the remaining around 67%. The shares are purchased in full and credited to your demat account. The shares are pledged as collateral via DDPI\/POA.<\/p>\n        <\/li>\n        <li>\n          <strong>Interest Is Charged Daily<\/strong>\n          <p style=\"margin:0;\">From T+1 day onwards, interest accrues at \u20b95 per day for every \u20b910,000 or part thereof funded, until you sell or pay back the funded amount to convert to CNC delivery.<\/p>\n        <\/li>\n        <li>\n          <strong>You Exit and Settle the Funded Amount<\/strong>\n          <p style=\"margin:0;\">When you sell, the sale proceeds settle the funded amount first. The remaining balance (profit or loss) is credited to your trading account. On Shoonya, selling MTF shares is instant; no separate unpledge request is needed.<\/p>\n        <\/li>\n      <\/ol>\n\n      <h3>Example: Buying Radddy Industries With MTF<\/h3>\n      <ul class=\"doc\">\n        <li>Stock: Radddy Industries (NSE)<\/li>\n        <li>Stock price: \u20b91,000 per share<\/li>\n        <li>Shares you want to buy: 200 shares (\u20b92,00,000 total)<\/li>\n        <li>Your capital (around 33% margin): \u20b966,667<\/li>\n        <li>Shoonya funds: \u20b91,33,333<\/li>\n        <li>Daily interest (14 slabs of \u20b910,000 \u00d7 \u20b95): \u20b970 per day<\/li>\n        <li>Interest for 30 days: \u20b970 \u00d7 30 = \u20b92,100<\/li>\n      <\/ul>\n\n      <div class=\"balance\">\n        Stock rises 5% (sell at \u20b91,050) <span>\u2192<\/span> \u20b910,000 \u2212 \u20b92,100 interest = \u20b97,900 (You Made)\n        <small>Without MTF, with only \u20b966,667, you could buy 66 shares. With MTF, you bought 200 \u2014 so your \u20b97,900 profit on the same capital is significantly higher than the \u20b93,300 you&#8217;d have made on 66 shares, after accounting for interest<\/small>\n      <\/div>\n\n      <p style=\"font-size:14px;color:var(--grey);\">MTF amplifies both gains and losses. If the stock fell 5% instead, you&#8217;d lose \u20b910,000 on your position, plus \u20b92,100 in interest = \u20b912,100 total loss on \u20b966,667 capital (around 18.15% loss). Without MTF, the loss would have been \u20b93,300 (around 4.95%). Always trade within your risk limits.<\/p>\n\n      <div class=\"disclaimer\">\n        <strong>Disclaimer:<\/strong> This is a hypothetical example created solely to explain how MTF works. The stock mentioned is fictional and does not represent any real listed company. The figures used are illustrative and should not be interpreted as investment advice, stock recommendations, or an assurance of returns.\n      <\/div>\n\n      <h2><span class=\"ez-toc-section\" id=\"Which_Stocks_Are_Eligible_for_MTF\"><\/span>Which Stocks Are Eligible for MTF?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n      <p>Not all stocks are available for MTF. SEBI mandates that only liquid, large-cap securities can be used for margin trading. Shoonya offers MTF on 1300+ NSE-approved stocks, subject to stock eligibility, regulatory requirements, and internal risk management rules.<\/p>\n\n      <h3>Stocks Generally Not Eligible for MTF<\/h3>\n      <p>MTF is generally not available for:<\/p>\n      <ul class=\"doc\">\n        <li>Small-cap stocks below the approved category<\/li>\n        <li>Stocks under exchange restrictions or trading bans<\/li>\n        <li>Stocks with low liquidity<\/li>\n        <li>T2T or Trade-to-Trade stocks<\/li>\n        <li>Stocks that do not meet broker or exchange risk criteria<\/li>\n      <\/ul>\n      <p style=\"font-size:14px;color:var(--grey);\">Stock eligibility can change over time. Investors should check the latest eligible stock list on the trading platform before placing an MTF order.<\/p>\n\n      <h2><span class=\"ez-toc-section\" id=\"Who_Can_and_Cannot_Use_MTF\"><\/span>Who Can (and Cannot) Use MTF?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n      <p>Margin Trading Facility is available only to investors who meet specific eligibility requirements. Since MTF involves broker funding and share pledging, users must complete the necessary account authorisations before activating the facility.<\/p>\n      <div class=\"cols\">\n        <div class=\"col\">\n          <h3>Who Can Use MTF?<\/h3>\n          <ul class=\"doc\">\n            <li>Resident Indian individuals with an active Shoonya trading + demat account<\/li>\n            <li>Accounts with DDPI (Demat Debit and Pledge Instruction) or POA are activated. This is required for auto-pledging of MTF shares<\/li>\n            <li>Users who have accepted the MTF terms and conditions on the Shoonya mobile app<\/li>\n          <\/ul>\n        <\/div>\n        <div class=\"col\">\n          <h3>Who Cannot Use MTF?<\/h3>\n          <p>MTF is generally not available to:<\/p>\n          <ul class=\"doc\">\n            <li>NRIs (Non-Resident Indians)<\/li>\n            <li>NRO account holders<\/li>\n            <li>Minors<\/li>\n            <li>Custodial participants<\/li>\n            <li>Accounts without DDPI or POA activation<\/li>\n            <li>Accounts without active NSE Equity segment access<\/li>\n          <\/ul>\n        <\/div>\n      <\/div>\n\n      <h2><span class=\"ez-toc-section\" id=\"Shoonya_MTF_Pricing_Complete_Breakdown\"><\/span>Shoonya MTF Pricing: Complete Breakdown<span class=\"ez-toc-section-end\"><\/span><\/h2>\n      <div class=\"tbl-scroll\">\n        <table>\n          <thead>\n            <tr><th>Charge Type<\/th><th>Applicable Charges<\/th><\/tr>\n          <\/thead>\n          <tbody>\n            <tr><td>Daily Interest<\/td><td>\u20b95 per day for every \u20b910,000 or part thereof funded<\/td><\/tr>\n            <tr><td>Brokerage<\/td><td>\u20b95 or 0.03% per executed order, whichever is lower<\/td><\/tr>\n            <tr><td>Square-off Charges<\/td><td>Nil<\/td><\/tr>\n            <tr><td>Pledge \/ Unpledge Charges<\/td><td>\u20b920 + GST per ISIN<\/td><\/tr>\n            <tr><td>Invocation Charges<\/td><td>\u20b920 + GST per ISIN<\/td><\/tr>\n          <\/tbody>\n        <\/table>\n      <\/div>\n\n      <h2><span class=\"ez-toc-section\" id=\"Shoonya_MTF_Interest_Rate_Structure\"><\/span>Shoonya MTF Interest Rate Structure<span class=\"ez-toc-section-end\"><\/span><\/h2>\n      <div class=\"tbl-scroll\">\n        <table>\n          <thead>\n            <tr><th>Funded Amount<\/th><th>Daily Interest<\/th><\/tr>\n          <\/thead>\n          <tbody>\n            <tr><td>Up to \u20b91,00,000<\/td><td><span class=\"num\">\u20b950<\/span><\/td><\/tr>\n            <tr><td>Up to \u20b92,00,000<\/td><td><span class=\"num\">\u20b9100<\/span><\/td><\/tr>\n            <tr><td>Up to \u20b93,00,000<\/td><td><span class=\"num\">\u20b9150<\/span><\/td><\/tr>\n            <tr><td>Up to \u20b94,00,000<\/td><td><span class=\"num\">\u20b9200<\/span><\/td><\/tr>\n            <tr><td>Up to \u20b95,00,000<\/td><td><span class=\"num\">\u20b9250<\/span><\/td><\/tr>\n          <\/tbody>\n        <\/table>\n      <\/div>\n\n <div class=\"quote\">\n        <p><strong>Important Note:<\/strong> MTF is subject to provisions of SEBI Circular CIR\/MRD\/DP\/54\/2017 dated June 13, 2017 and the terms and conditions mentioned in the Rights and Obligations Statement issued by Finvasia Securities Private Limited.<\/p>\n      <\/div>\n\n\n      <h2><span class=\"ez-toc-section\" id=\"How_Shoonya_MTF_%E2%82%B90_Square-off_Charges_Matter\"><\/span>How Shoonya MTF \u20b90 Square-off Charges Matter<span class=\"ez-toc-section-end\"><\/span><\/h2>\n      <p>If Shoonya is forced to square off your MTF position due to a margin shortfall, you pay \u20b90. While other stockbrokers may charge \u20b920 &#8211; \u20b950 + GST per order. If you hold 10 different MTF stocks and all are squared off in one event, other stockbrokers would charge you \u20b9250 &#8211; \u20b9590 in square-off fees alone. In comparison, Shoonya charges nothing.<\/p>\n\n      <h2><span class=\"ez-toc-section\" id=\"How_Interest_Is_Calculated\"><\/span>How Interest Is Calculated<span class=\"ez-toc-section-end\"><\/span><\/h2>\n      <p>Interest on Shoonya MTF is simple and transparent:<\/p>\n      <ul class=\"doc\">\n        <li><strong>Rate:<\/strong> \u20b95 per day for every \u20b910,000 or part thereof funded<\/li>\n        <li><strong>Ends on:<\/strong> The day you sell or close the position<\/li>\n        <li><strong>Applied to:<\/strong> The funded amount only (not your own capital)<\/li>\n        <li><strong>Interest charged from:<\/strong> T+1 day (the day after your purchase)<\/li>\n      <\/ul>\n\n      <div class=\"tbl-scroll\">\n        <table>\n          <thead>\n            <tr><th>Funded Amount<\/th><th>Holding Period<\/th><th>Interest Cost Calculation<\/th><\/tr>\n          <\/thead>\n          <tbody>\n            <tr><td>\u20b91,00,000<\/td><td>7 Days<\/td><td><span class=\"num\">\u20b950 \u00d7 7 = \u20b9350<\/span><\/td><\/tr>\n            <tr><td>\u20b91,00,000<\/td><td>30 Days<\/td><td><span class=\"num\">\u20b950 \u00d7 30 = \u20b91,500<\/span><\/td><\/tr>\n            <tr><td>\u20b92,00,000<\/td><td>30 Days<\/td><td><span class=\"num\">\u20b9100 \u00d7 30 = \u20b93,000<\/span><\/td><\/tr>\n            <tr><td>\u20b95,00,000<\/td><td>30 Days<\/td><td><span class=\"num\">\u20b9250 \u00d7 30 = \u20b97,500<\/span><\/td><\/tr>\n          <\/tbody>\n        <\/table>\n      <\/div>\n\n      <p>For example, if an investor purchases shares worth \u20b92 lakh and uses \u20b91 lakh of broker funding for 30 days, the interest cost would be \u20b91,500 during the holding period.<\/p>\n\n      <div class=\"quote\">\n        <p><strong>Important Note:<\/strong> Use the MTF calculator on Shoonya to enter your exact capital, stock price, and holding period to get a precise interest estimate before you trade.<\/p>\n      <\/div>\n\n      <h2><span class=\"ez-toc-section\" id=\"Shoonya_MTF_vs_Intraday_vs_Delivery_CNC_Full_Comparison\"><\/span>Shoonya MTF vs Intraday vs Delivery (CNC): Full Comparison<span class=\"ez-toc-section-end\"><\/span><\/h2>\n      <p>Choosing between MTF, intraday, and delivery on Shoonya depends on your holding period, risk appetite, and tax preferences. Here is a detailed comparison:<\/p>\n      <div class=\"tbl-scroll\">\n        <table>\n          <thead>\n            <tr><th>Feature<\/th><th>MTF<\/th><th>Intraday (MIS)<\/th><th>Delivery (CNC)<\/th><\/tr>\n          <\/thead>\n          <tbody>\n            <tr><td>Holding period<\/td><td>Overnight &amp; long-term (up to 365 days)<\/td><td>Same day only<\/td><td>Unlimited<\/td><\/tr>\n            <tr><td>Leverage<\/td><td>Up to 3X (around 33% margin)<\/td><td>Up to 5X (varies by stock)<\/td><td>Nil<\/td><\/tr>\n            <tr><td>Interest charges<\/td><td>Starts from T+1 at \u20b95 per \u20b910,000 slab<\/td><td>No<\/td><td>No<\/td><\/tr>\n            <tr><td>Shares in demat?<\/td><td>Yes, with auto pledging<\/td><td>No (squared off same day)<\/td><td>Yes<\/td><\/tr>\n            <tr><td>Square-off deadline<\/td><td>None \u2014 hold for 365 days<\/td><td>Auto square-off before 3:20 PM<\/td><td>None<\/td><\/tr>\n            <tr><td>Tax treatment<\/td><td>STCG\/LTCG<\/td><td>Speculative income\/business income<\/td><td>STCG \/ LTCG<\/td><\/tr>\n            <tr><td>Capital required<\/td><td>Around 33% margin required<\/td><td>upto 20% of Margin required<\/td><td>100% Margin required<\/td><\/tr>\n            <tr><td>Best for<\/td><td>Short-to-medium term view (days to months)<\/td><td>Same-day price movements<\/td><td>Long-term investing<\/td><\/tr>\n            <tr><td>BTST supported?<\/td><td>Yes<\/td><td>No<\/td><td>Yes (T1 selling)<\/td><\/tr>\n          <\/tbody>\n        <\/table>\n      <\/div>\n\n      <h3>When to Choose MTF Over Intraday<\/h3>\n      <ul class=\"doc\">\n        <li>You have a multi-day or multi-week view on a stock, but don&#8217;t want to commit 100% capital<\/li>\n        <li>You want the tax benefit of delivery treatment (STCG\/LTCG) rather than speculative income tax<\/li>\n        <li>You want to hold through overnight volatility without auto-square-off risk<\/li>\n        <li>You believe a short-term catalyst (earnings, results, news) will play out over 3\u201314 days<\/li>\n      <\/ul>\n\n      <h3>When to Choose Delivery (CNC) Over MTF<\/h3>\n      <ul class=\"doc\">\n        <li>You are investing for more than 6\u201312 months, and interest costs erode gains over long holds<\/li>\n        <li>The stock is not on the MTF-approved list (small-cap, mid-cap stocks)<\/li>\n        <li>You want full dividends and rights entitlements without position closure risk<\/li>\n        <li>You have the full capital available and don&#8217;t need leverage<\/li>\n      <\/ul>\n\n      <h2><span class=\"ez-toc-section\" id=\"How_Margin_Requirement_Varies_by_Stock\"><\/span>How Margin Requirement Varies by Stock?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n      <p>Each MTF-eligible stock has a different margin requirement. This depends mainly on two risk measures:<\/p>\n      <ul class=\"doc\">\n        <li><strong>VAR:<\/strong> Value at Risk, which measures the possible loss in a stock under normal market conditions<\/li>\n        <li><strong>ELM:<\/strong> Extreme Loss Margin, which covers additional risk during unusual market movements<\/li>\n      <\/ul>\n      <p>Stocks with higher volatility usually require a higher margin. This means the investor may need to contribute more upfront, while the broker funds a smaller portion.<\/p>\n\n      <div class=\"tbl-title\">Margin Formula for MTF Stocks<\/div>\n      <div class=\"tbl-scroll\">\n        <table>\n          <thead>\n            <tr><th>Stock Type (Group 1) Securities<\/th><th>Margin Calculation<\/th><\/tr>\n          <\/thead>\n          <tbody>\n            <tr><td>Stocks having F&amp;O Contracts<\/td><td>Margin is calculated as VAR + 3 x ELM or 33.33%, whichever is higher<\/td><\/tr>\n            <tr><td>Non F&amp;O Contracts &amp; ETF&#8217;s<\/td><td>Margin is calculated as VAR + 5 x ELM or 33.33%, whichever is higher <\/td><\/tr>\n          <\/tbody>\n        <\/table>\n      <\/div>\n\n      <h2><span class=\"ez-toc-section\" id=\"Why_Is_DDPI_or_POA_Required\"><\/span>Why Is DDPI or POA Required?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n      <p>When shares are purchased through MTF, they are pledged as collateral against the broker-funded amount. To enable this process, investors must have either a Demat Debit and Pledge Instruction (DDPI) or a Power of Attorney (POA) activated on their account.<\/p>\n      <p>Without DDPI or POA, MTF cannot be activated because the broker cannot create the required pledge on the purchased shares.<\/p>\n      <div class=\"quote\">\n        <p><strong>Important:<\/strong> MTF access on Shoonya is currently available only to accounts with DDPI or POA enabled. Investors should ensure the authorisation is active before initiating the MTF activation process.<\/p>\n      <\/div>\n\n      <h2><span class=\"ez-toc-section\" id=\"How_to_Place_MTF_Order_on_Shoonya\"><\/span>How to Place MTF Order on Shoonya<span class=\"ez-toc-section-end\"><\/span><\/h2>\n      <p>Shoonya users need to activate the Margin Trading Facility before placing MTF orders. The process includes account authorisation, acceptance of MTF terms, and OTP verification in the Shoonya mobile app.<\/p>\n      <ol class=\"steps\">\n        <li>\n          <strong> Ensure DDPI\/POA Is Active<\/strong>\n          <p style=\"margin:0;\">MTF requires DDPI (Demat Debit and Pledge Instruction) to be enabled on your account. If not active, contact Shoonya support at +91 97799 02002 or clientsupport@shoonya.com.<\/p>\n        <\/li>\n        <li>\n          <strong> Activate MTF on the Shoonya Mobile App<\/strong>\n          <p style=\"margin:0;\">Open the Shoonya app \u2192 navigate to the tools section in the dashboard \u2192 Tap MTF \u2192 accept the MTF terms and conditions \u2192 complete OTP verification. MTF is now enabled on your account.<\/p>\n        <\/li>\n        <li>\n          <strong> Select an Eligible Stock and Place an Order<\/strong>\n          <p style=\"margin:0;\">Search for a stock in the MTF stock list \u2192 Tap Buy. Check the margin, price, and estimated charges on the order window \u2192 Tap Buy Order \u2192 Tap Proceed on the surveillance measure popup.<\/p>\n        <\/li>\n      <\/ol>\n\n      <h2><span class=\"ez-toc-section\" id=\"How_to_Exit_MTF_Position_on_Shoonya\"><\/span>How to Exit MTF Position on Shoonya<span class=\"ez-toc-section-end\"><\/span><\/h2>\n      <p>To exit, simply sell the shares; no separate unpledge request required. Sale proceeds settle the funded amount first, and the balance (profit or loss) is credited to your account.<\/p>\n\n      <h2><span class=\"ez-toc-section\" id=\"Additional_MTF_Features_on_Shoonya\"><\/span>Additional MTF Features on Shoonya<span class=\"ez-toc-section-end\"><\/span><\/h2>\n      <p>Shoonya also supports certain order and position-related features for MTF, subject to stock eligibility and available margin.<\/p>\n      <div class=\"tbl-scroll\">\n        <table>\n          <thead>\n            <tr><th>Feature<\/th><th>Details<\/th><\/tr>\n          <\/thead>\n          <tbody>\n            <tr><td>AMO<\/td><td>After-market orders may be placed using MTF, subject to eligibility.<\/td><\/tr>\n            <tr><td>GTT<\/td><td>Good Till Triggered orders may be supported for MTF trades.<\/td><\/tr>\n            <tr><td>BTST<\/td><td>Buy Today, Sell Tomorrow may be available, with interest charged from the T+1 opening balance.<\/td><\/tr>\n            <tr><td>Pre\/Post-Market Orders<\/td><td>MTF orders may be placed during pre-market and post-market sessions, subject to availability.<\/td><\/tr>\n            <tr><td>Convert MTF to CNC<\/td><td>Users may convert eligible MTF positions to delivery by paying the funded amount and applicable dues.<\/td><\/tr>\n          <\/tbody>\n        <\/table>\n      <\/div>\n\n      <h2><span class=\"ez-toc-section\" id=\"How_to_Calculate_Your_MTF_Cost_via_Shoonya_Calculator\"><\/span>How to Calculate Your MTF Cost via Shoonya Calculator<span class=\"ez-toc-section-end\"><\/span><\/h2>\n      <p>Before placing an MTF trade, investors should estimate the total funding cost. This helps them understand how much interest may apply during the holding period and what price movement may be needed to cover that cost.<\/p>\n      <div class=\"tbl-title\">MTF Cost Formula<\/div>\n      <div class=\"tbl-scroll\">\n        <table>\n          <thead>\n            <tr><th>Calculation<\/th><th>Formula<\/th><\/tr>\n          <\/thead>\n          <tbody>\n            <tr><td>Daily Interest<\/td><td>\u20b95 per \u20b910,000 or part thereof funded<\/td><\/tr>\n            <tr><td>Total Interest<\/td><td>Number of \u20b910,000 slabs \u00d7 \u20b95 \u00d7 Holding Days<\/td><\/tr>\n            <tr><td>Break-even Price Move %<\/td><td>Total Interest \u00f7 Total Trade Value \u00d7 100<\/td><\/tr>\n          <\/tbody>\n        <\/table>\n      <\/div>\n\n      <h3>Example: 15-Day Hold on \u20b92 Lakh MTF Trade<\/h3>\n      <ul class=\"doc\">\n        <li>Total trade value: \u20b92,00,000<\/li>\n        <li>Your capital (around 33%): \u20b966,667<\/li>\n        <li>Funded amount: \u20b91,33,333<\/li>\n        <li>Daily interest (14 slabs of \u20b910,000 \u00d7 \u20b95): \u20b970 per day<\/li>\n        <li>Total interest for 15 days: \u20b970 \u00d7 15 = \u20b91,050<\/li>\n        <li>Break-even price move: \u20b91,050 \u00f7 \u20b92,00,000 = 0.53%<\/li>\n      <\/ul>\n      <div class=\"balance\">\n        Bottom line <span>\u2192<\/span> Stock must rise more than 0.53% in 15 days to cover the interest cost\n      <\/div>\n      <p style=\"font-size:14px;color:var(--grey);\">Use the interactive MTF calculator on Shoonya to model any scenario instantly. Adjust your capital, stock price, and holding period with a slider.<\/p>\n\n      <h2><span class=\"ez-toc-section\" id=\"Risks_of_MTF_Trading\"><\/span>Risks of MTF Trading<span class=\"ez-toc-section-end\"><\/span><\/h2>\n      <p>Margin Trading Facility can increase buying power, but it also increases exposure to market risk. Since part of the trade value is funded by the broker, investors should understand the associated costs, interest charges, margin obligations, and risk management requirements before using MTF.<\/p>\n      <ul class=\"doc\">\n        <li><strong>Amplified Losses:<\/strong> A decline in the stock price can have a larger impact on your capital because MTF increases exposure through broker funding. In certain circumstances, losses and obligations may exceed the initial margin contributed by the investor.<\/li>\n        <li><strong>Interest Cost:<\/strong> Interest is charged on the funded amount until the position is closed. As a result, the total cost of holding an MTF position increases over time and should be considered when evaluating a trade.<\/li>\n        <li><strong>Margin Shortfall and Square-Off Risk:<\/strong> If margin requirements are not maintained, the broker may initiate risk management actions, including margin calls, partial\/full liquidation, or square-off of positions in accordance with its risk management policy.<\/li>\n        <li><strong>Corporate Action Impact:<\/strong> Certain corporate actions may affect MTF positions. Depending on the nature of the event and applicable broker policies, positions may be restricted, converted, or closed before the relevant record or ex-date.<\/li>\n        <li><strong>Mark-to-Market (MTM) and Additional Margin Requirements:<\/strong> Changes in stock volatility, margin requirements, or mark-to-market losses may require investors to maintain additional margin to continue holding MTF positions.<\/li>\n        <li><strong>Concentration Risk:<\/strong> Taking a large MTF position in a single stock can increase portfolio risk. Diversification may help reduce the impact of adverse price movements in any one security.<\/li>\n <li><strong>SEBI Risk Disclosure:<\/strong> Investments in securities markets are subject to market risks. Read all related documents carefully before investing. MTF involves borrowing and interest costs, and investors should ensure they understand the associated risks and obligations before using the facility.<\/li>\n      <\/ul>\n\n     \n\n      <h2><span class=\"ez-toc-section\" id=\"What_is_MTF_FAQS\"><\/span>What is MTF : FAQS<span class=\"ez-toc-section-end\"><\/span><\/h2>\n      <div class=\"faq\">\n        <details class=\"faq-item\">\n          <summary class=\"faq-q\">What is the difference between an MTF and a margin loan?<span class=\"faq-icon\">+<\/span><\/summary>\n          <p class=\"faq-a\">Margin Trading Facility (MTF) is a SEBI-regulated facility designed specifically for purchasing eligible stocks. The shares bought through MTF are pledged as collateral against the funded amount. A margin loan is a broader lending product that may have different terms, collateral requirements, and usage conditions.<\/p>\n        <\/details>\n        <details class=\"faq-item\">\n          <summary class=\"faq-q\">Can I do BTST (Buy Today Sell Tomorrow) with MTF?<span class=\"faq-icon\">+<\/span><\/summary>\n          <p class=\"faq-a\">Yes, Shoonya supports BTST transactions through MTF, subject to stock eligibility and settlement conditions. Interest is generally charged from the T+1 opening balance. BTST availability may be affected by settlement holidays and exchange regulations.<\/p>\n        <\/details>\n        <details class=\"faq-item\">\n          <summary class=\"faq-q\">What happens to my MTF position during a bonus or stock split?<span class=\"faq-icon\">+<\/span><\/summary>\n          <p class=\"faq-a\">For corporate actions such as bonuses, stock splits, and dividends, adjustments are generally processed as per applicable exchange and depository guidelines. However, certain corporate actions, including rights issues, buybacks, takeovers, or OFS (Offer for Sale), may require MTF positions to be closed before the ex-date. Investors are typically notified in advance.<\/p>\n        <\/details>\n        <details class=\"faq-item\">\n          <summary class=\"faq-q\">Can I place AMO or GTT orders using MTF?<span class=\"faq-icon\">+<\/span><\/summary>\n          <p class=\"faq-a\">Yes, Shoonya supports AMO (After Market Orders) and GTT (Good Till Triggered) orders for eligible MTF positions, subject to stock eligibility, available margin, and platform functionality.<\/p>\n        <\/details>\n        <details class=\"faq-item\">\n          <summary class=\"faq-q\">How can I convert an MTF position into a delivery (CNC) position?<span class=\"faq-icon\">+<\/span><\/summary>\n          <p class=\"faq-a\">An MTF position may be converted into a regular delivery (CNC) position by paying the outstanding funded amount and completing the applicable process. Once converted, no further MTF interest is charged on that position.<\/p>\n        <\/details>\n        <details class=\"faq-item\">\n          <summary class=\"faq-q\">What happens if I do not meet a margin requirement?<span class=\"faq-icon\">+<\/span><\/summary>\n          <p class=\"faq-a\">If your MTF account goes into a margin shortfall (your account balance falls below the required maintenance margin), Shoonya may square off your MTF positions to recover the funded amount.<\/p>\n        <\/details>\n        <details class=\"faq-item\">\n          <summary class=\"faq-q\">How do I check my MTF interest statement on Shoonya?<span class=\"faq-icon\">+<\/span><\/summary>\n          <p class=\"faq-a\">MTF interest charges can typically be viewed through the account ledger, funds statement, or transaction reports available on the trading platform. Charges are generally reflected separately for easier tracking.<\/p>\n        <\/details>\n        <details class=\"faq-item\">\n          <summary class=\"faq-q\">Is MTF available on BSE?<span class=\"faq-icon\">+<\/span><\/summary>\n          <p class=\"faq-a\">Shoonya&#8217;s MTF is currently available for NSE Group 1 securities (NSE stocks). Check the current eligible stocks list or contact Shoonya support for the latest information.<\/p>\n        <\/details>\n        <details class=\"faq-item\">\n          <summary class=\"faq-q\">What is the difference between an active and passive fund manager?<span class=\"faq-icon\">+<\/span><\/summary>\n          <p class=\"faq-a\">An active fund manager selects stocks or securities to try to outperform the benchmark. A passive fund manager follows an index and aims to keep the fund aligned with it.<\/p>\n        <\/details>\n      <\/div>\n\n          <div class=\"final-cta\">\n      <h3>Ready to Trade with MTF on Shoonya?<\/h3>\n      <div class=\"final-pills\">\n        <span class=\"final-pill\">\u20b90 square-off charges<\/span>\n        <span class=\"final-pill\">\u20b95 brokerage per order<\/span>\n        <span class=\"final-pill\">\u20b95 per day for every \u20b910,000 or part thereof funded <\/span>\n        <span class=\"final-pill\">1300+ eligible stocks<\/span>\n      <\/div>\n      <a href=\"https:\/\/shoonya.com\/mtf\" target=\"_blank\" rel=\"noopener\">Activate MTF \u2192<\/a>\n    <\/div>\n\n    <div class=\"disclaimer\">\n      <strong>Disclaimer:<\/strong> This content is for education and awareness purpose only and should not be considered investment advice or a recommendation. Investments in securities markets are subject to market risks. Read all the related documents carefully before investing.\n    <\/div>\n    <\/div>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Shoonya MTF: Margin Trading Facility Explained Margin Trading Facility, commonly known as MTF, is a SEBI-regulated service that lets you buy stocks by paying only a portion of the total trade value up front. Your broker funds the remaining amount and charges a small daily interest on the funded portion until you sell. Think of &hellip; <a href=\"https:\/\/shoonya.com\/blog\/margin-trading-facility\/\" class=\"more-link\">Continue reading<span class=\"screen-reader-text\"> &#8220;Margin Trading Facility (MTF): The Complete Guide for Investors&#8221;<\/span><\/a><\/p>\n","protected":false},"author":17,"featured_media":18425,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":"","_members_access_role":[],"_members_access_error":""},"categories":[6967],"tags":[5465,10055,10054,10442,10056],"class_list":["post-17603","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-product-update","tag-margin-trading-facility","tag-mtf","tag-shoonya-mtf","tag-trade-with-3x-margin","tag-what-is-mtf"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>MTF Trading Guide: Costs, Rules, and Risks<\/title>\n<meta name=\"description\" content=\"MTF allows investors to buy stocks by paying a partial margin while the broker funds the remaining amount. 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