{"id":2483,"date":"2026-06-09T08:49:08","date_gmt":"2026-06-09T08:49:08","guid":{"rendered":"https:\/\/shoonya.com\/faq\/?p=2483"},"modified":"2026-09-07T03:20:42","modified_gmt":"2026-09-07T03:20:42","slug":"what-is-mtf","status":"publish","type":"post","link":"https:\/\/shoonya.com\/faq\/mtf\/what-is-mtf\/","title":{"rendered":"What is MTF?"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">Margin Trading Facility (MTF) is a service that enables you to purchase shares by paying only a portion of the total cost. The remaining amount is funded by Shoonya, and interest is charged on this funded amount.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Let\u2019s assume you have \u20b9100000 in your trading account, and you want to buy a stock priced at \u20b91000 per share. If the stock qualifies for 3 times margin in MTF, you can buy up to 300 shares with your own fund \u20b9100000.<br>Here\u2019s how:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Total value of 300 shares: \u20b91000 \u00d7 300 = \u20b9300000\u00a0<\/li>\n\n\n\n<li>Your contribution (the margin you pay): \u20b9100000\u00a0<\/li>\n\n\n\n<li>Amount funded by Shoonya: \u20b9300000 (total <strong>BUY<\/strong> value) &#8211; \u20b9100000 (your contribution as a Margin) = \u20b9200000\u00a0<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Shoonya will fund \u20b9200000, and you\u2019ll be charged <strong>\u20b95 per day for every \u20b910,000 or part thereof funded under MTF<\/strong>.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Interest calculation:<\/strong>&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If you <strong>sell<\/strong> the stock after holding the position for 10 days, the interest calculation for the funded amount of \u20b9200000 would be as follows:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Daily interest: 20 slabs of \u20b910,000 \u00d7 \u20b95 per slab = \u20b9100 per day\u00a0<\/li>\n\n\n\n<li>Total interest for 10 days: \u20b9100 \u00d7 10 = \u20b91000\u00a0<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">After 10 days, you would pay <strong>\u20b91000<\/strong> in interest for holding these <strong>300<\/strong> shares using MTF.&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Margin Trading Facility (MTF) is a service that enables you to purchase shares by paying only a portion of the total cost. The remaining amount is funded by Shoonya, and interest is charged on this funded amount.&nbsp; Let\u2019s assume you have \u20b9100000 in your trading account, and you want to buy a stock priced at&hellip; <a class=\"more-link\" href=\"https:\/\/shoonya.com\/faq\/mtf\/what-is-mtf\/\">Continue reading <span class=\"screen-reader-text\">What is MTF?<\/span><\/a><\/p>\n","protected":false},"author":5,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":"","_members_access_role":[],"_members_access_error":""},"categories":[186],"tags":[],"class_list":["post-2483","post","type-post","status-publish","format-standard","hentry","category-mtf","entry"],"acf":[],"_links":{"self":[{"href":"https:\/\/shoonya.com\/faq\/wp-json\/wp\/v2\/posts\/2483","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/shoonya.com\/faq\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/shoonya.com\/faq\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/shoonya.com\/faq\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/shoonya.com\/faq\/wp-json\/wp\/v2\/comments?post=2483"}],"version-history":[{"count":3,"href":"https:\/\/shoonya.com\/faq\/wp-json\/wp\/v2\/posts\/2483\/revisions"}],"predecessor-version":[{"id":2965,"href":"https:\/\/shoonya.com\/faq\/wp-json\/wp\/v2\/posts\/2483\/revisions\/2965"}],"wp:attachment":[{"href":"https:\/\/shoonya.com\/faq\/wp-json\/wp\/v2\/media?parent=2483"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/shoonya.com\/faq\/wp-json\/wp\/v2\/categories?post=2483"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/shoonya.com\/faq\/wp-json\/wp\/v2\/tags?post=2483"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}