Step-by-step guide to avail Margin Trading Facility:
Step 1: Open Demat and Trading account with Bajaj Financial Securities Limited.
Step 2: Login to the Bajaj Securities website.
Step 3: Search the name of share that you want to buy under MTF.
Step 4: Click on ‘BUY’.
Step 5: Various order types are displayed, select ‘MARGIN’.
Step 6: Check that you have enough fund to meet the minimum margin requirement.
Step 7: Click on ‘BUY’ and confirm the order.
Step 8: After the market hours, you will get an email and SMS from CDSL to authorise the MTF pledge request.
Frequently asked questions
Margin Financing account is where investors can boost their purchasing ability just by paying a small portion of the total value as margin. BFSL provides the rest of the funds at a low-interest rate using the client's cash or collateral.
If you already have a Demat account, simply visit the BFSL website and log in to the trading platform. Then, select margin and choose the stock you wish to trade and execute the transaction.
If you are not a BFSL customer, you need to first open a demat account with them. After that, you can follow the same process as mentioned above to trade on their platform.
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.