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.
What happens when the stock leverage is reduced to 1x:
When the leverage on an MTF position is reduced to 1x, 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...
| Scenario | What it means |
|---|
| The leverage on my MTF stock becomes 1x | This 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 amount | If sufficient funds are not available, the RMS team may square off the position. |
| I already hold the position under MTF | Even 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
Related Articles
How can I check if the leverage has changed?
Clients can verify any changes in leverage under the MTF through two simple and reliable methods. Checking the MTF Eligible Stock List The MTF eligible stock list provides updated information on all stocks that qualify for margin trading along with ...
What happens if a stock gets suspended while I hold it under MTF?
If a stock held under Margin Trading Facility (MTF) gets suspended from trading on the exchange, it immediately becomes ineligible for MTF funding. Suspension can happen due to regulatory action, company non-compliance, merger-related announcements, ...
What happens if an MTF stock changes from EQ to BE after taking a position?
If you have taken an MTF position in a stock and its category later changes from EQ to BE, the stock can no longer continue under the MTF product type. This is because MTF is available only for stocks in the EQ category. In such cases, FYERS takes ...
What happens if the stock I’m holding under MTF goes through a demerger?
If a stock you are holding under MTF (Margin Trading Facility) goes through a demerger, the position will not remain under MTF. It will be automatically converted to CNC. After the conversion, you must maintain sufficient funds in your trading ...
What Happens If I Fail to Maintain Sufficient Funds or Miss Payments in MTF?
At FYERS, Margin Trading Facility (MTF) allows you to trade with leverage, and with that comes the responsibility of maintaining sufficient margins and paying interest on time. If margin requirements are not met or interest dues remain pending, it ...