Frequently asked questions
With a margin account, a trader can borrow money from a broker instead of having to put up the entire trade's worth. A margin account often enables a trader to trade other financial products, such as futures and options.
You can visit the Bajaj Broking website and avail Margin Trade Financing.
The four main types of margins in trading are:
- Initial Margin
- Maintenance Margin
- Variation Margin
- Margin Call
There are three variants of MTF interest rates:
- Freedom Pack offers MTF interest rate of 18% p.a.
- Professional Pack offers MTF interest rate of 12.5% p.a.
- Bajaj Privilege Club offers MTF interest rate of 10.75% p.a.
Yes, having a Demat account is mandatory for Margin Trade Financing.
The maximum limit for Margin Trade Financing with Bajaj Broking is Rs. 90 crore.
The trade will be liquidated if the minimum margin requirement is not met if the margin drops below the minimum needed amount.
Given below are the advantages of MTF:
- Increase capital return with minimal capital allocation
- Ideal for traders looking for short-term gain
- MTF at one of the lowest interest rates
- Enhances diversification of investor’s portfolios
- Hold equities for a year with a small margin
- Dedicated Relation Manager
Margin Trade Financing allows investors to increase their buying power by paying just a fraction of the total value as margin. The remaining amount is funded by BFSL at a nominal interest rate.
Yes, MTF is a secured. The securities eligible for margin trading are determined by SEBI and the exchanges, and may change periodically.
No, intraday trade is not allowed under Margin Trade Financing.
