Margin Trading Facility (MTF) at FYERS: Trade on Your Terms

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21

Hello,

Kindly clear my doubts

  • To acquire MTF whether there must be stocks or positions in our demat account?

if not, Can we acquire MTF for multiple stocks?

ex: Suppose I have 1 lakh in my account but want to initiate a trade on 3-4 stocks at once and hold it for some days.

is it possible to take it?

  • suppose I am short of 25000 whether have to pay 49 rs daily or 0.049% of 25k?
  • Are any documents required?
22

Earlier Fyers older version was have this this feature. In latest app it was removed. We can open 5 charts side by side & switch immediately one chart to another. Nowadays chart loading also taking more time than earlier.

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23

MTF & Pledge Margin now days not Useful for trader,

its reducing the profits.

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Hi @111810532783804659545, Please find the answers to your MTF queries below:

  1. Do you need stocks in your demat account to acquire MTF?
    Ans: No, you don’t need to already have stocks in your demat account to acquire MTF. MTF allows you to buy stocks on leverage (i.e., with borrowed funds) based on the margin you have in your trading account.

  2. Can you acquire MTF for multiple stocks?
    Ans: Yes, you can acquire MTF for multiple stocks simultaneously. For example, if you have ₹1 lakh in your account, you can initiate trades on 3-4 different stocks at once and hold them for a few days, as long as you stay within the margin limits. The exact amount of leverage will depend on the stocks you choose and the available margin.

  3. Charges for being short of ₹25,000 in MTF?
    Ans: If you are short by ₹25,000 and using MTF, you will pay a daily interest charge. The rate is 0.049% of the borrowed amount.
    For ₹25,000, the calculation is: 25,000×0.049%=₹12.25/day
    This is the daily interest amount you will pay on the ₹25,000 borrowed amount, not ₹49 per day.

  4. Are any documents required for MTF?
    Ans: To activate MTF, you will need to enable DDPI (Demat Debit and Pledge Instruction) authorization. Please find the article for the procedure.

25

Thanks for reply

Few more queries

1)Is there any time limit? Can I hold for 1-2 months by taking MTF and paying the interest regularly?

2)Will you notify us if interest margin shortfalls (Because I am a positional trader keep SL and profit alerts once it triggers I will square off my positions)

  1. Is exit the same as normal CNC stock exit? or is it different?
26

Okay, below are the response to your queries.

  1. Is there any time limit for holding stocks under MTF? Can I hold for 1-2 months and pay interest regularly?
    Ans: Yes, you can hold your MTF positions for 1-2 months or even longer, provided you pay the interest regularly. There is no specific time limit for holding stocks under MTF as long as the margin requirements are met and the interest is paid on time. However, please note that your holdings will be monitored in case of significant margin shortfalls or market volatility.

  2. Will you notify us of interest margin shortfalls?
    Ans: Yes, you will receive notifications in case of margin shortfalls. We send alerts via email if your margin falls below the required levels. It’s important to monitor your positions, especially for MTF, as margin requirements can change with market conditions. These notifications will help you ensure you maintain sufficient funds to avoid forced liquidation of your positions.

  3. Is the exit process the same as for normal CNC stock exit?​
    ​Ans: The exit process for MTF is not the same as a normal CNC exit, where you sell the stock from your holdings. Instead, the MTF position will appear under the “Positions” section, and you must manually square off the position to exit it and close the leveraged trade.

Hope this helps!

1 Like
27

Thanks for reply..

2 Likes
28

i have trade sence 5 oct , in ledger interest did not show, where can i see the interest show of mtf

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Hey @sksahu01992-m5f, Currently, if you wish to see your interest, you need to raise a ticket. Our team will provide you with the details. However, our team is working on it. Stay tuned!

30

Hi, From where can i see borrowing capital ?

31

from my most favorite trading platform fyers now turned into almost un-usable platform. especially for the traders who trades on chart.

1 Like
32

Hi @g.k.rai.cqi7asl2 , That is concerning to hear. We are a stable platform, and you can check our Operational status on the status dashboard. We are committed to providing our clients with top-notch service. Could you please provide more details about the issues you’re experiencing, especially regarding chart trading? I’d be glad to look into this closely and help you further.

33

Hi @Ux5cyi70hu, you will find the borrowed capital, i.e., clear balance, in the funds section on our web version.

34

Fyers charging 18% MTF interest and 18% GST on interest amount. It means around 23.7% actual interest. No broker is charging GST on interest amount.

and I have my position open for 5 days only, but they charged for 7 days even after close my position. I can prove with proofs.

@communications_team @tejas_khoday @shruthi_shetty

2 Likes
35

Hi @mganesh6496, the interest rate for MTF is 18% per annum, applied uniformly across various holding periods, including BTST (Buy Today Sell Tomorrow), swing trading, and long-term investments. With respect to interest charged it will only be charged for the exact number of days your position is held. If the position is open for 5 days, interest is charged for those 5 days only, and this will appear as a consolidated entry in your ledger for easy tracking of finance costs.

36

I have already sent an email with all proofs regarding 18% GST & extra 2 days charged. Fyers very transparent broker but coming to MTF a big NO.

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Could you please share the ticket id here? so that I can get this checked thoroughly, @mganesh6496.

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Ticket ID 1677088

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Thanks for sharing the ticket ID, @mganesh6496. I will check this and get back to you.

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GST is not applicable in MTF interest.