Margin Trading Facility (MTF) is a feature that allows traders to Buy Stocks By Paying Only A Part Of The Total Amount, while the remaining funds are provided by Lakshmishree. It helps traders take larger positions with limited capital.
For example, if MTF offers 3X Leverage, and you have ₹10,000, you can buy stocks worth ₹30,000. Out of this, ₹10,000 is your own investment (margin), and the remaining ₹20,000 is funded by Lakshmishree.
MTF is useful for clients who want to Increase their Buying Power in the equity delivery segment. However, interest is charged on the borrowed amount as per Lakshmishree’s MTF interest rate policy.