What is Margin Trading Facility (MTF)?
Margin Trading Facility (MTF) allows you to buy stocks by paying only a portion of the trade value upfront while FYERS funds the remaining amount. It helps you take larger delivery positions with limited capital by leveraging approved stocks in your demat account.
How it works
- You pay an initial margin, which is a percentage of the total stock value.
- FYERS funds the balance as per a slab-wise interest model.
- Stocks are pledged but remain in your demat account in your name.
- Interest is calculated daily and posted to your MTF ledger weekly.
Example
If you want to purchase shares worth ₹4,00,000 and the margin requirement is 25%:
- Your margin: ₹1,00,000
- Funded by FYERS: ₹3,00,000
- Applicable slab: ₹1,00,000.01 – ₹10,00,000 → 15.49% p.a. or 0.0424% per day
- Daily interest: ₹3,00,000 × 0.0424% = ₹127.20
Interest is charged daily and appears in your MTF ledger on a weekly basis. To learn more about rates, refer to this article.
Key features
- Positions can be held beyond the trading day.
- Only exchange-approved and FYERS-enabled stocks are allowed.
- Interest is charged only on the borrowed amount.
- You can track MTF activity in the “Funds & Margin” and “MTF Ledger” sections.
What If...
| Scenario | Outcome |
|---|
| The margin requirement changes | You’ll see updated requirements in the order window. You may need to add funds or reduce exposure depending on risk parameters. |
| You don’t square off the position | It continues under MTF with daily interest until fully funded or sold. You can track it in the “Positions” section. |
| A corporate action is announced | You’re eligible for dividends, bonuses, and other corporate actions since the shares remain in your demat account. |
| You have MTF-related queries | You can contact our support for assistance. |
MTF is not available for intraday or F&O trading on FYERS.
Last updated: 02 Sep 2025
Related Articles
What Is the Process to Convert an MTF Position to an Overnight Position?
You can convert your Margin Trading Facility (MTF) position to an Overnight (CNC) position using FYERS Web or FYERS Trader. On FYERS App Steps to Convert an MTF Position Open the FYERS App and log in Go to Portfolio → Positions Tap the stock under ...
How to activate Margin Trading Facility (MTF) on FYERS?
Margin Trading Facility (MTF) allows you to buy select stocks by paying only a portion of the total amount upfront. To activate MTF, your Demat Debit and Pledge Instruction (DDPI) must be enabled. Once it's active, you can enable MTF on any of FYERS’ ...
What Is the Interest Rate for Margin Trading Facility (MTF) in FYERS?
When you use Margin Trading Facility (MTF) at FYERS, interest is charged on the borrowed amount based on a slab-wise structure. The rate is determined by your total borrowed amount on any given day—not the trade duration—ensuring consistent and ...
Which Stocks Are Eligible for MTF Trading?
FYERS offers access to over 1,400 NSE-listed stocks under the Margin Trading Facility (MTF). These stocks are selected based on SEBI and exchange guidelines, and eligibility may change depending on internal risk controls and regulatory updates. Where ...
What Are the Pledge Charges on MTF?
Managing Margin Trading Facility (MTF) positions involves nominal charges. At FYERS, a fee is applicable for every pledge and unpledge transaction associated with your MTF trades. MTF Pledge Charges at FYERS Type of Transaction Charge per Transaction ...