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What Is Margin Trading Facility (MTF) and How Does It Work

Margin Trading Facility (MTF) allows investors to buy stocks by paying only a portion of the total price, with the broker funding the rest. It helps take larger positions without blocking full capital. Investors must pay interest on borrowed funds and maintain margin requirements, making risk management crucial to avoid losses.

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What Is Margin Trading Facility (MTF) and How Does It Work

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  1. Read blog - https://navia.co.in/margin-trade-funding What Is Margin Trading Facility (MTF) and How Does It Work?

  2. Read blog - https://navia.co.in/margin-trade-funding What Is MTF? • Margin Trading Facility (MTF) allows investors to borrow funds from brokers to buy stocks. • It helps you take larger positions with less capital. • Essentially, the broker lends you money against your collateral or securities.

  3. Read blog - https://navia.co.in/margin-trade-funding How MTF Works • You select a stock eligible for MTF from your broker’s approved list. • Deposit an initial margin—a percentage of the stock value. • Broker provides the rest as a loan to complete the purchase. • You pay interest on the borrowed amount until the position is closed.

  4. Benefits of MTF Read blog - https://navia.co.in/margin-trade-funding • Leverage: Control larger positions with smaller capital. • Flexibility: Hold positions longer than intraday trades. • Opportunity: Access high-value stocks or multiple trades with the same capital. • Efficiency: Potential for higher returns if the trade moves in your favor.

  5. Read blog - https://navia.co.in/margin-trade-funding Risks & Key Points • Leverage amplifies losses if stock prices fall. • Interest charges accumulate the longer you hold. • Margin calls may require additional funds if positions drop. • Use MTF carefully, with research and risk management, not as a shortcut to profits.

  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/margin-trade-funding

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