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Margin Trading Facility
Margin Trading Facility (MTF)
How to avail Margin Trading Facility (MTF) ?
A step-by-step guide to avail Margin Trading Facility:
How to open a Demat and Trading account
1. Open Demat and Trading account with Bajaj Broking
2. Login to the Bajaj Broking platform
3. Search the name of share that you want to buy under MTF
4. Click on ‘BUY’
5. Various order types are displayed, select ‘MARGIN’
6. Check that you have enough fund to meet the minimum margin requirement
7. Click on ‘BUY’ and confirm the order. The MTF pledge must be executed before 9 PM on the same trading day
8. After the market hours, you will get an email and SMS from CDSL to authorize the MTF pledge request
Features and benefits of Margin Trading Facility (MTF)
Advantages of opening a Demat Account
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Improved investment opportunities
By utilising higher leverage, you can make larger investments. You can avail up to 4 times the position of the contribution made.
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MTF limits
Get Margin Trading facility of Up to Rs. 90 crore.
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Higher profit potential with low investments
MTF allows you to buy additional shares, so your trades go according to your research and trend.
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No documentation required
MTF is activated when you open Demat and trading account with us. No documents are required to apply for MTF.
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Safe platform for trading
MTF is regularly monitored by SEBI, which continuously creates and modifies rules for the benefit of traders.
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Eligibility and document requirements for MTF
MTF is pre-activated when you open Demat and Trading account with us. No documents are required to apply for MTF. However, you need four documents and a photograph handy while opening the Demat and Trading account.
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Eligibility criteria
- Must have a Demat and Trading account with us.
- Demat and Trading account should be active.
- MTF can be availed for selective stocks only and margin requirement is stock-specific.
- Adequate margin needs to be maintained for MTF orders.
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Fees and charges for margin trading facility
Here is an overview of the fees and charges associated with the Bajaj Broking Margin Trading Facility.
Type of fees | Applicable charges |
| Account opening charges | Nil |
| Interest rate | 11.99% to 14.99% p.a. |
| Subscription charges | Freedom pack - Free for 1st year; Rs. 431 p.a. 2nd year onwards Professional pack - Rs. 2,500 p.a. |
| Pledging charges | Rs. 35 (taxes applicable) |
Call and trade charges | Additional Rs. 20 per executed order |
Frequently asked questions
How does margin trading facility work in India?
Margin Trading Facility (MTF) allows investors to purchase eligible stocks by paying only a portion of the total value, while the broker funds the remaining amount. Investors pay interest on the funded portion and must maintain the required margin as per regulatory guidelines.
What happens in case the minimum margin of an MTF order is not maintained?
When the minimum margin for a Margin Trading Facility (MTF) order is not maintained, it creates a margin shortfall. If this deficit is not rectified, your broker will issue a margin call. Failing to top up the required funds will result in forced position liquidation (auto square-off) and regulatory penalties.
How to check the details of MTF positions?
Inside the Bajaj Broking app, under the Margin Report, you can access a comprehensive report that provides information on Margin Trading Facility positions and their corresponding Margins.
What is the full form of MTF?
MTF stands for Margin Trading Facility. It allows you to buy stocks by paying only a portion of the total value while the broker funds the remaining amount, helping you trade more than your available capital alone would allow.
What is the maximum leverage in MTF?
The Margin Trading Facility offers up to 4x leverage on trading funds across 900+ stocks. The actual leverage depends on stock-specific factors such as liquidity, volatility, and regulatory guidelines applicable to each security.
How is MTF different from intraday trading?
In intraday trading, you must buy and sell your position on the same day. With MTF, you can buy stocks today and hold the position for an extended period while borrowing funds from your broker, giving you far greater flexibility.
What is the maximum funding allowed under MTF?
The maximum limit for Margin Trading Facility is Rs. 90 crore. The actual limit depends on your account type, available margin, stock eligibility, and applicable regulatory guidelines at the time of the transaction.
Which stocks are eligible for MTF?
SEBI and brokers define a list of approved stocks that can be purchased under MTF. Eligibility depends on factors such as stock liquidity, market capitalisation, and volatility. You can check the approved MTF stock list on the trading platform before placing an order.
How long can I hold shares purchased using MTF?
You can hold MTF positions for more than 365 days. Interest is charged on the funded amount for the entire holding period. The position may be liquidated if the minimum margin requirement is not maintained at any point.
Can I do BTST using MTF?
Yes, the Margin Trading Facility can be used for Buy Today Sell Tomorrow (BTST) transactions. Interest will be charged on the funded amount from T+1 day on the opening balance carried forward overnight.
Can I do MTF trades in both NSE and BSE?
Yes, MTF is available for trading on both NSE and BSE. It is applicable only in the equity cash segment and cannot be used for derivatives, currency, or commodities trading on either exchange.
Disclaimer
*Disclaimer for Bajaj Finance Limited (‘BFL’):
Stock trading business is carried by Bajaj Financial Securities Limited ("BFSL"), a broker and Depository Participant registered with Securities Exchange Board of India and offers various products/services related to Securities market (Securities market products/services). BFL merely facilitates display of data shared by BFSL on its webpage/mobile application. Such data received from BFSL, or any of its service providers is on “as is” basis. BFL does not make any representation or warranty, express or implied, regarding accuracy, completeness of such data displayed herein.
When you opt to avail the Securities market products/services of BFSL by clicking on the BFSL weblink/mobile app, you will be redirected to BFSL's web page/mobile app for initiation and completion of the transaction. You are supposed to exercise independent diligence by reading all the related documents carefully before deciding to invest in Securities market Products/services.
BFL is a Non-Banking Financial Company carrying the business of acceptance of deposits and providing lending solutions to Retail and Corporate customers. BFL does not offer nor advice on Securities market products/services and shall not be liable or responsible for any of your investment decision."
**Disclaimer: For Bajaj Financial Securities Limited
Investments in the securities market are subject to market risk, read all related documents carefully before investing.
Broking services offered by Bajaj Financial Securities Limited (Bajaj Broking). Reg Office: Bajaj Auto Limited Complex, Mumbai –Pune Road Akurdi Pune 411035. Corporate Office: Bajaj Financial Securities Limited, 1st Floor, Mantri IT Park, Tower B, Unit No 9 & 10, Viman Nagar, Pune, Maharashtra 411014. SEBI Registration No.: INZ000218931 | BSE Cash/F&O/CDS (Member ID:6706) | NSE Cash/F&O/CDS (Member ID: 90177) | DP registration No: IN-DP-418-2019 | CDSL DP No.: 12088600 | NSDL DP No. IN304300 | AMFI Registration No.: ARN –163403.
Details of Compliance Officer: Mr. Boudhayan Ghosh (For Broking/DP/Research) | Email: compliance_sec@bajajbroking.in | Contact No.: 020-4857 4486. For any investor grievances write to compliance_sec@bajajbroking.in/ compliance_dp@bajajbroking.in (DP related)
This content is for educational purpose only. Securities quoted are exemplary and not recommendatory.
Research Services are offered by Bajaj Broking as Research Analyst under SEBI Regn: INH000010043.
For more disclaimer, check here: https://www.bajajbroking.in/disclaimer