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How is MTF Process

The Margin Trading Facility (MTF) process allows investors to buy stocks by partly paying with their own funds and borrowing the rest from the broker. Once the investor selects eligible stocks, the broker funds the remaining amount, with the shares held as collateral. Interest is charged on the borrowed portion until repayment. This process helps investors take larger positions with limited capital, but it also carries higher risk due to leverage.

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How is MTF Process

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  1. Read blog - https://navia.co.in/blog/how-to-use-mtf-in-stock-market-a-beginners-guide/ How is MTF Process?

  2. Read blog - https://navia.co.in/blog/how-to-use-mtf-in-stock-market-a-beginners-guide/ What is MTF? • MTF (Margin Trading Facility) allows investors to buy stocks by paying only a fraction of the total value. • The broker lends the remaining amount, making it a leveraged trading option. • Ideal for short to medium-term trades, not for long-term holding.

  3. Read blog - https://navia.co.in/blog/how-to-use-mtf-in-stock-market-a-beginners-guide/ Step 1 – Check Eligible Stocks • Not all stocks can be bought on MTF. • Brokers maintain a list of MTF-eligible stocks based on liquidity, volatility, and SEBI guidelines. • Always verify the stock’s eligibility before placing an order.

  4. Read blog - https://navia.co.in/blog/how-to-use-mtf-in-stock-market-a-beginners-guide/ Step 2 – Pay Initial Margin & Borrow from Broker • Investor deposits an initial margin (a percentage of stock value). • Broker lends the rest, secured against cash or approved securities. • Haircut: Broker reduces pledged stock value slightly as a risk control measure.

  5. Read blog - https://navia.co.in/blog/how-to-use-mtf-in-stock-market-a-beginners-guide/ Step 3 – Hold, Monitor & Close Position • Positions can be held for a limited period as per broker rules. • Daily interest is charged on the borrowed amount. • Investor must actively monitor positions to manage margin calls and interest costs. • Closing the position repays the broker and realizes profit or loss.

  6. Disclaimer Investment in securities market are subject to market risks, read all the related documents carefully before investing. The securities quoted are for illustrative purposes and are not intended as recommendations. Brokerage will not exceed the SEBI prescribed limit. Navia Markets Ltd ,SEBI Registration No.INZ000095034-NSE Member code for CM, FAO & CD: 07708 - BSE Clearing No. for CM, FAO & CD: 6341-MCX Member ID: 45345 NSDL DP ID: IN300378-CDSL DP ID: 12086500-SEBI Registration No. for DP: IN-DP-311-2017-GST Registration number :33AAACM4739R2ZZ-Registered office: Ganga Griha, 4th & 5th Floor, No.9, Nungambakkam High Road, Chennai - 600 034 Email ID: ig@navia.co.in - Contact No: +91 70100 75500 https://bit.ly/naviadisclaimer Read blog - https://navia.co.in/blog/how-to-use-mtf-in-stock-market-a-beginners-guide/

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