At FYERS, we’re always looking for ways to support our traders, and we understand that one of the biggest hurdles is capital limitations when trying to seize market opportunities. That’s why we’re excited to introduce Margin Trading Facility (MTF) on our platform! With MTF, you can boost your buying power, diversify your portfolio with limited funds, and make the most of timely opportunities without having to arrange for additional funds. It’s all about giving you the flexibility and freedom to trade on your terms—because when opportunity knocks, you should be ready to act.
What is MTF?
Margin Trading Facility (MTF) allows you to borrow funds to increase your buying power and take larger positions in the market. Let’s understand with an example:
We've all been there as traders—when a stock is on the verge of a breakout, driven by a news event or an indicator, and you're limited by your available funds. You might have ₹1 lakh in your account, but you know this is the moment to go bigger. That’s where MTF steps in. It lets you leverage up to 4x your capital, allowing you to buy ₹4 lakh worth of shares instead of just ₹1 lakh. Plus, with only a small interest on the borrowed amount, it’s a simple and affordable way to act when the market presents big opportunities.
How Does MTF Work?
Pick your stock: Choose the stocks you want to buy.
Select MTF: While placing your order, choose MTF to get extra funds.
Trade with more buying power: Use the additional margin to buy stocks worth more than your available funds can.
Pay interest only on what you borrow: You only pay a small interest on the borrowed amount, making it easy to trade with more funds.
Pledging Your MTF Holdings: Previously, pledging MTF holdings was a manual process requiring OTP-based authorisation. However, starting 8th November 2024, this process will be automated as per the latest NSE circular. All MTF shares will now be automatically pledged after purchase, eliminating the need for manual OTP authorisation. For further details, please refer to our notice.
Why Use MTF?
Trade bigger with up to 4x leverage on 900+ stocks
Imagine trading four times your available funds on a wide selection of stocks—over 900 to be exact. With MTF, that’s not just possible, it’s simple. Take bigger positions and tap into more opportunities, all without needing extra cash upfront.No time limits on your trades
Unlike many brokers that cut your MTF positions after a few weeks or months, we let you hold your positions for as long as you want. Whether you’re playing the long game or riding short-term waves, you decide when to exit—no deadlines, no pressure.Trade the size that fits your risk appetite
With MTF, you're in more control of your position sizing. Want to play it safe with a smaller trade? Go for it. Ready to go higher? That's your call too. Unlike futures, where a 20% margin locks you into 4x-5x leverage, MTF allows you to adjust according to your risk appetite. You’re not boxed into any rigid rules—trade freely based on how you see the market.Reduced margin requirements
Forget about fixed lot sizes. Most futures trades will set you back at least ₹1.2 lakh, and you’ll need multiples of that for every additional lot. But with MTF, you’re not tied to such big numbers. You can take positions in your favorite stocks with as little as ₹10,000 or lower, giving you the freedom to trade exactly how you want—without the heavy upfront commitment.Low-cost leverage when you need it
Leverage shouldn’t be expensive, and with MTF, it isn’t. While the annual interest rate is 18% due to short-term borrowing needs, the daily interest rate is just 0.049%. This means that for every ₹1 lakh you borrow, you’re only paying ₹49.3 a day. It’s an affordable way to add extra firepower to your trades without breaking the bank.
How to Get Started with MTF:
Log in to your FYERS account: Visit the FYERS website or use the mobile app to log in.
Select the stock: Go to the ‘Margin Trading Facility (MTF)’ option in the order window & click on “Try MTF".
Complete the registration: Follow the prompts to complete the MTF registration process. You may need to accept the terms and conditions.
Activate MTF with OTP: Once registered, activate MTF on your account.
Start trading with MTF: Begin trading and select the MTF option while placing your orders to use the facility.
Please note that enabling DDPI feature is mandatory to access our MTF facility. If you haven't enabled DDPI yet, check out our support article.
Got questions? We’ve got answers
We understand that you might have a few questions around MTF. No problem! Visit our FAQ Section to find quick and helpful answers.
Final Thoughts
MTF is more than just a feature; it’s an invitation to trade differently. With easy activation and access to additional funds, you can finally act on those opportunities without hesitation. Take a moment to explore what MTF can do for you. Activate the facility today and step into a world of trading possibilities. Your next move could be your best one!