What happens when the stock leverage is reduced to 1x?

What happens when the stock leverage is reduced to 1x?

If the leverage on an MTF stock is reduced to 1x, it means funding is no longer available for that position under Margin Trading Facility (MTF). In such cases, the client must maintain the entire position value using their own funds.

FYERS does not provide any funding for that stock. The full position value must be funded by the client, and the entire amount will be blocked from the client’s available balance.

Example:

Suppose a client purchases XYZ stock worth ₹10,000 under MTF with 4x leverage. Initially, the client contributes ₹2,500 as margin, while the remaining ₹7,500 is funded by FYERS.

Later, due to market volatility or applicable exchange regulations, the leverage is reduced from 4x to 1x. This means MTF funding is no longer available for that stock, and the client must now maintain the entire ₹10,000 from their own funds.

In this scenario:

  • FYERS will not provide any funding
  • The full ₹10,000 required for the position will be blocked from the client’s available balance
  • If sufficient funds are not available, the RMS team may square off the position

What If...

ScenarioWhat it means
The leverage on my MTF stock becomes 1xThis means MTF funding is no longer available for that stock, and the full position value must be funded by the client.
I do not have enough balance to cover the full amountIf sufficient funds are not available, the RMS team may square off the position.
I already hold the position under MTFEven for an existing MTF position, the full amount may need to be blocked if the leverage is revised to 1x.
Last updated: 06 Apr 2026