Margin Trading Facility FAQs

Know the answers to all common questions related to Margin Trading Facility

Frequently asked questions

What is margin financing account?

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.

How can I avail MTF with Bajaj Financial Securities?

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.

What are the different types of margins in trading?

The four main types of margins in trading are:

  1. Initial Margin
  2. Maintenance Margin
  3. Variation Margin
  4. Margin Call
What are the MTF interest rates with BFSL?

There are three variants of MTF interest rates:

  1. Freedom Pack offers MTF interest rate of 18% p.a.
  2. Professional Pack offers MTF interest rate of 12.5% p.a.
  3. Bajaj Privilege Club offers MTF interest rate of 10.75% p.a.

Do I need a Demat account for MTF?

Yes, having a Demat account is mandatory for Margin Trade Financing.

What is the maximum limit for Margin Trade Financing with BFSL?

The maximum limit for Margin Trade Financing with BFSL is Rs. 90 crore.

What happens in case the minimum margin of an MTF order is not maintained?

The trade will be liquidated if the minimum margin requirement is not met if the margin drops below the minimum needed amount.

What are the advantages of MTF?

Given below are the advantages of MTF:

  1. Increase capital return with minimal capital allocation
  2. Ideal for traders looking for short-term gain
  3. MTF at one of the lowest interest rates
  4. Enhances diversification of investor’s portfolios
  5. Hold equities for a year with a small margin
  6. Dedicated Relation Manager
What is MTF?

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.

Is MTF safe and secure?

Yes, MTF is a secured. The securities eligible for margin trading are determined by SEBI and the exchanges, and may change periodically.

Can I execute intraday trade under MTF?

No, intraday trade is not allowed under Margin Trade Financing.

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