What is Margin Trading Facility (MTF), and how does it work on FYERS?

What is Margin Trading Facility (MTF), and how does it work on FYERS?

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.
MTF is not available for intraday or F&O trading on FYERS.

How to Activate MTF

To use MTF, your Demat Debit and Pledge Instruction (DDPI) must be enabled. Once it’s active, you can activate MTF on any FYERS platform.

You must have DDPI activated before you can activate MTF. For process refer to this article.

On FYERS App

  • Open the FYERS App and log in.
  • Tap the menu (☰) and go to My Profile.
  • Navigate to the Segment tab.
  • Tap Activate MTF.
  • Enter the OTP sent to your registered mobile or email.
  • You’ll receive a confirmation once activation is submitted.

Processing time: 24 to 48 working hours.

On FYERS Web

  • Go to https://fyers.in/web/ and log in.
  • Click the profile icon (top-right) and select My Profile.
  • Go to the Segment tab.
  • Click Activate MTF.
  • Enter the OTP sent to your registered mobile or email.
  • You’ll see an on-screen confirmation after submitting.

Processing time: 24 to 48 working hours.

On FYERS Trader

  • Log in at trade.fyers.in.
  • Open the Order Panel for any stock.
  • Click Try MTF in the order options.
  • Read and accept the terms and conditions.
  • Click Activate with OTP and enter the OTP sent to your mobile.
  • Once verified, your MTF activation is submitted.

Processing time: 24 to 48 working hours.

What If...

Scenario / IssueOutcome / Resolution
The margin requirement changesYou’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 positionIt continues under MTF with daily interest until fully funded or sold. You can track it in the “Positions” section.
A corporate action is announcedYou’re eligible for dividends, bonuses, and other corporate actions since the shares remain in your demat account.
You have MTF-related queriesYou can contact our support for assistance.
Didn't receive OTP during activationEnsure your mobile/email is correctly linked to your FYERS account. Retry after a few minutes.
“Activate MTF” button not visibleEnsure your DDPI is enabled. Learn how to activate DDPI.
MTF not activated after 48 hoursLog out and log back in. If still not available, contact our support.

Last updated: 16 Sep 2025

    • Related Articles

    • What’s the difference between Intraday, Overnight, and MTF in FYERS?

      When you place an order on FYERS, you must choose a product type: Intraday, Delivery/Overnight, or MTF. These options decide how long your position stays active, whether leverage applies, and how the position is squared off. Product types and how ...

    • What Is Smart Exit in FYERS, and How Does It Work?

      Smart Exit in FYERS is a risk management feature that allows traders to set overall profit and loss limits across all open positions. When these levels are reached, the system either exits positions automatically (Smart Exit) or sends a notification ...

    • How do I place an MTF order in FYERS?

      Margin Trading Facility (MTF) allows you to buy eligible stocks by paying a partial margin upfront, while FYERS funds the rest. This facility is ideal for traders who want to take delivery of shares with leverage and hold them beyond a day. MTF ...

    • Do I need to pledge or authorise my holdings for MTF trading on FYERS?

      No. Manual pledge authorisation is no longer required for MTF holdings on FYERS. All eligible MTF positions are automatically pledged by the system from the backend. How MTF Authorisation Works Now Automatic Pledge: Once you buy a stock under the MTF ...

    • Which stocks are eligible, and what leverage is offered for MTF on FYERS?

      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 may be revised periodically depending on internal risk frameworks. Where to Check ...