Margin Trading Facility (MTF)
Do I need to pledge/authorise my MTF holdings?
Yes, you need to authorise your MTF holdings via OTP on the day of purchase between 4:00 PM and 9:00 PM. If you do not authorize the holdings within this window, your MTF position will be treated as a normal holding, which could lead to a margin ...
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 DP charges applicable when selling MTF holdings, and are regulatory charges the same as for CNC?
Yes, The DP (Depository Participant) charges for selling MTF holdings are ₹3.50 plus 18% GST. Additionally, you may be eligible for discounts based on specific conditions. The details are outlined in the table below: Transaction Type DP Charges (₹) ...
Will I be eligible for corporate actions such as dividends for my MTF positions?
Yes, as an MTF trader on FYERS, you are eligible for corporate actions such as dividends. The shares remain in your Demat account under the MTF facility, ensuring you receive all corporate benefits associated with those shares.
Can I do BTST with MTF, and will I get the sell credit when I sell the next day?
Yes, you can execute BTST (Buy Today, Sell Tomorrow) using the MTF product type. Here’s what you need to know: Sell Credit: When you sell the shares the next day, the sell credit is received and can be used across all trading segments on the same ...
If I’ve given a POA, do I need DDPI for MTF trading?
No, you don’t need a DDPI (Demat Debit and Pledge Instruction) if you have already provided a Power of Attorney (POA). A POA allows us to carry out specific transactions on your behalf, including debiting securities from your Demat account and ...
What happens to MTF positions during a market crash or extreme volatility?
To protect investors during volatile markets, we reserve the right to square-off positions at or beyond 75% mark-to-market (MTM) loss.
How can I track MTF interest charges in my account?
All interest charges and payments related to MTF are clearly itemized in the 'Ledger' section under 'Reports' in the 'My Account' portal. This makes monitoring your financials straightforward and transparent.
Are there withdrawal restrictions for using MTF?
Withdrawals are restricted to the extent of your mark-to-market (MTM) losses on your Margin Trading Facility (MTF) positions. However, any funds that exceed the MTM losses can still be withdrawn. This ensures that the losses are accounted for while ...
How to activate Margin Trading Facility (MTF) in FYERS Web?
To activate the Margin Trading Facility (MTF) in FYERS Web (available only on Web 1.5 Version), follow these steps: Enable DDPI: Ensure that the Demat Debit and Pledge Instruction (DDPI) is enabled before proceeding. If you haven't enabled DDPI yet, ...
What happens if I miss the interest payments for using MTF?
If you miss an interest payment, your MTF trading capability will be temporarily paused. There’s no permanent blacklist for this; simply settle the dues to reactivate your MTF access. For any queries or clarifications, kindly contact support.
What's the maximum amount I can invest using MTF?
Each trader using MTF at FYERS will get an exposure of up to ₹25 lakh (updated from 11th December 2024). This limit is designed to help you leverage your investment strategies effectively while managing risks wisely.
Will I be notified about a margin call for any shortfall?
You'll receive notifications via email and phone calls to ensure you're promptly informed about any margin calls. This ensures you have the opportunity to address the situation quickly, helping you manage your Margin Trading Facility (MTF) positions ...
What are the consequences of not maintaining sufficient funds for MTF positions?
You must maintain the required margins for MTF positions. In case of a shortfall, our risk team will evaluate such positions for potential liquidation, emphasizing the importance of proper fund management.
How often is interest charged on MTF positions?
Interest on MTF-funded positions is levied weekly (7 days). The interest charges are reflected as a consolidated entry in the client's ledger, allowing for straightforward tracking of finance charges.
Are there any hidden charges associated with MTF other than interest?
No, there are no hidden charges for using the Margin Trading Facility (MTF) apart from brokerage and statutory charges as outlined in the True to Label circular. This transparency ensures you can plan your investments confidently, without worrying ...
Is the leverage fixed at 4x for all eligible stocks?
While MTF offers up to 4x leverage, the actual ratio may vary among eligible stocks based on specific criteria like volatility and liquidity, ensuring a balanced risk approach. Detailed leverage information for each stock is available on the MTF ...
Which stocks are eligible for MTF trading?
The list of eligible stocks for MTF includes 900 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 is the interest rate for MTF, and does it vary across different holding periods?
The interest rate for the Margin Trading Facility (MTF) is 18% per annum, applicable uniformly across various holding periods including BTST (Buy Today Sell Tomorrow), swing trading, and long-term investments. This consistent interest rate simplifies ...
What is Margin Trading Facility (MTF)?
Margin Trading Facility (MTF) is a service that allows you to buy shares by only paying a part of the total value upfront, called the initial margin. The remaining amount is funded by FYERS.For instance, if you want to purchase shares of a company ...