Understand Margin Trading Facility (MTF) with FYERS - Leverage Your Investments

What is Margin Trading Facility (MTF)?

Margin Trading Facility (MTF) lets you buy stocks by paying only a portion of the total trade value upfront. The remaining amount is funded by us. This feature enables you to take larger delivery positions with limited capital by leveraging approved stocks in your account.

How MTF Works

  • You pay an initial margin, which is a percentage of the stock's total value.
  • We fund the balance amount as per our slab-wise interest model.
  • Positions can be held beyond the day of purchase, subject to risk management and interest accrual.
  • Interest is calculated daily and posted to your MTF ledger on a weekly basis.

Example of MTF in Action

Suppose you want to purchase shares worth ₹4,00,000 and the margin requirement is 25%:

  • Your initial margin: ₹1,00,000
  • Borrowed amount funded by FYERS: ₹3,00,000

If the total borrowed amount is ₹3,00,000, it falls in the ₹1,00,000.01 – ₹10,00,000 slab:

  • Interest rate: 15.49% per annum or 0.0424% per day
  • Daily interest: ₹3,00,000 × 0.0424% ≈ ₹127.20

This interest is charged daily and reflected in your MTF ledger weekly.

For a detailed interest breakdown, refer to What is the interest rate for MTF in FYERS?

Key Features

  • Leverage depends on the stock's eligibility and exchange rules.
  • You can hold positions for multiple days, not just intraday.
  • Interest applies only on the borrowed amount, not the full trade value.
  • You can view eligible stocks for MTF trading within the FYERS platform.

What If...

▸ The margin percentage varies?

Margin requirements depend on the stock and may change as per risk management policies. You’ll see margin details in the order window during trade placement.

▸ You don’t square off the position?

Your position continues under MTF with daily interest until closed or fully funded. You can track this in the “Positions” section of the platform.

▸ A corporate action is announced?

You retain shareholder rights (such as dividends or bonuses) because the stocks are held in your demat account, even under MTF.

Additional Notes

  • Only approved stocks are eligible for MTF.
  • You can track interest charges via the “Funds & Margin” and “MTF Ledger” sections.
  • MTF is not applicable to intraday or F&O trades.

    • Related Articles

    • How to activate Margin Trading Facility (MTF) in FYERS Web?

      To activate the Margin Trading Facility (MTF) on FYERS Web 1.5, follow these steps in sequence. This process is only supported on the Web 1.5 version of the FYERS platform. Enable DDPI: Ensure your Demat Debit and Pledge Instruction (DDPI) is active. ...

    • What is the interest rate for Margin Trading Facility (MTF) in FYERS?

      If you’re using Margin Trading Facility (MTF), it’s important to understand how interest is charged on your borrowed amount. We apply a slab-wise interest rate based on your total borrowed amount on any given day. This structure ensures transparency ...

    • Which stocks are eligible for MTF trading?

      The list of eligible stocks for MTF includes 1400+ stocks from NSE. A detailed list of these stocks and their corresponding leverage options can be found on the MTF page within the FYERS App or on our website, alongside the MTF Margin calculator, ...

    • What are the pledge charges on MTF?

      At FYERS, the following charges apply for MTF (Margin Trading Facility) transactions: Pledge Request: ₹12 per transaction Unpledge Request: ₹12 per transaction These charges are standard for each transaction and help you plan the costs involved in ...

    • Are there withdrawal restrictions for using MTF?

      When using the Margin Trading Facility (MTF) at FYERS, your ability to withdraw funds is limited by your mark-to-market (MTM) losses. This means: You can withdraw funds exceeding your MTM losses. The portion of funds covering your MTM losses will be ...