Margin Trading Facility (MTF) Calculator - m.Stock (2024)

FAQs

What is the margin on M stock MTF? ›

In case of MTF, margin required is the minimum amount you must maintain in your trading account to take a position. With m. Stock, you only need to maintain 20% margin since you get up to 80% funding on the total trade value.

With our Margin Trading Facility (eMargin), you get up to 80% funding in 700+ stocks at one of the lowest interest rates, starting at 6.99%. This facility comes with zero subscription fees and zero brokerage charges when you open an m. Stock account.

In Margin Trading Facility, you get funding against cash available in your trading account. Whereas in Margin Pledge, you pledge your existing stock portfolio with m. Stock and in exchange, you receive funding. Did you know, you can use Margin Pledge and eMargin together?

In the case of stocks, bonds and ETFs, SEBI has mandated T+1 days for settling the transaction. In the case of mutual funds, it ranges between 1-2 days, depending upon the type of fund being purchased.

Used Margin is:

The net funds used for executed equity intraday, F&O positional/intraday trading, and delivery orders. The funds blocked for open orders that have not been executed yet. The amount displayed as the used margin when selling shares or holding open F&O positions.

If you are looking to maximise your trading potential, a margin trading facility (MTF) can be powerful. The feature allows you to take larger positions in the market than your account balance would typically allow, potentially leading to higher profits through increased buying power.

There is no minimum amount required to open a Demat account.

m.Stock's Margin Trading Facility (eMargin) has one of the lowest interest rates starting at 6.99% p.a. for funding above ₹5 crore. For funding up to ₹5 crore, 9.99% p.a. interest is applicable.

Yes, you can sell 100% of the shares bought on previous day in MTF under open positon - MTF. 7. How do we sell/ square off position in MTF? Once you have an open position in MTF, it is visible under the Intraday tab under Open Positions on the same day and under MTF page from next day onwards.

Pledge in the stock market means taking a loan against its securities. This arrangement is typical for companies where investors hold many shares. The borrower retains ownership of these stocks and receives dividends, interests, and capital gains on those shares.

How much interest is charged on MTF? ›

Don't forget that Pay Later (MTF) is a kind of loan. Hence, you are liable to pay interest on it. An Interest rate of 0.049% per day (18% per annum) is charged on the borrowed amount.

It is a mandatory process introduced by SEBI. When you buy shares under MTF, you have to pledge those shares to continue holding the position. It needs to be done by 9:00 PM on the same day of purchasing stock. In case you fail to do so, your shares will be squared-off on T+7 days.

How long does it take to withdraw money from M stock? According to the m. Stock client handbook, payout requests from your demat account to your bank account should be processed within 24 hours. This means that you should receive the funds in your bank account within one business day of submitting your request.

The 3-Day Rule in stock trading refers to the settlement rule that requires the finalization of a transaction within three business days after the trade date. This rule impacts how payments and orders are processed, requiring traders to have funds or credit in their accounts to cover purchases by the settlement date.

In short, the 3-day rule dictates that following a substantial drop in a stock's share price — typically high single digits or more in terms of percent change — investors should wait 3 days to buy.

There are no Call and trade charges levied on the users of m. Stock. The platform charges standard ₹120 AMC every quarter. However, investors do have the option to make AMC free for life by paying a one-time fee of ₹999.

m Stock is a popular brokerage firm that offers zero brokerage on equity delivery trades. This feature alone makes it an attractive option for investors looking to save on trading costs. Additionally, m Stock provides a user-friendly and intuitive trading platform that allows for seamless execution of trades.

In short, the MTF pledge is the pledging of shares bought under the margin trading facility (MTF) to the broker as collateral. On the other hand, margin pledge uses demat shares as collateral to fulfil margin requirements instead of cash.