WHAT ARE MTF STOCKS?

What Are MTF Stocks?

What Are MTF Stocks?

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mtf stocks refer to stocks that are eligible for trading under the Margin Trading Facility (MTF) offered by stockbrokers. This facility allows investors to buy stocks by paying only a fraction of the total value upfront, while the remaining amount is funded by the broker. It’s like buying on credit — you get ownership today but pay later, with interest.






Key Features of MTF Stocks




  • Leverage: Investors can get up to 4x leverage on select stocks.




  • SEBI-Approved List: Only certain stocks, approved by SEBI and exchanges, qualify for MTF.




  • Holding Period: Investors can hold MTF positions for an extended time, unlike intraday trades.




  • Interest Cost: Interest is charged on the borrowed amount, similar to a loan.







Benefits of Trading MTF Stocks




  • More Buying Power: Invest more with less capital.




  • Opportunity in Rising Markets: Maximize gains during bullish trends.




  • Flexibility: Long holding periods give investors time to realize potential profits.







Risks to Keep in Mind

























Risk Details
Market Volatility Amplified losses if stock prices fall.
Interest Cost Can eat into profits if positions are held for long durations.
Margin Calls If the stock drops significantly, brokers may ask you to add more funds.






Final Thoughts


MTF stocks can be a powerful tool for active traders and experienced investors looking to maximize gains. However, due to the leveraged nature, they also carry higher risks. It’s crucial to understand the terms and choose MTF stocks wisely — ideally from a trusted MTF stock list provided by your broker.


Always analyze your risk appetite before using the MTF calculator to plan trades.

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