I normally use broker terminal for just buy and sell , but with MTF as its NSE only trades , it should be implemented. Eagerly waiting for zerodha to activate MTF for all.
" Tarik pe tarik , tarik per tarik… "
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It is SEBI rule to show best price every day, based on previous days closing. So if it closed on BSE higher yesterday, that will be shown today.
I’m not sure what you’re referring to.
On the marketwatch, you can add scrips exchange wise, so the relevant price feed shows up.
On the holdings page, we show the price from the exchange where the previous close is higher. For the whole of that day, price feeds from the same exchange are displayed on the holdings page. If the price of the stock was higher on NSE, price feeds of NSE show up.
You’re equating the position page to the holdings page. While you may have your specific use case to equate the two, I don’t know if all users look at it the same way, since holdings tend to be held longer. Nonetheless, we’ve passed on your feedback to show live feeds to our team internally. We’ll do our best.
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@VenuMadhav ,When the previous day’s close at BSE is higher, we receive fewer price updates throughout the day for holdings due to lower trading volume at BSE. I suggest providing a live feed from NSE instead. This would help in making quicker decisions based on holding’s PnL.
I have faced this same issue many times.
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Does that mean there is no brokerage in mtf if it’s treating like delivery order?
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One issue with MTF is no conversion to delivery. Lets say if I have sufficient free cash. I have to sell the MTF position and then rebuy it with cash again to avoid interests. I don’t know the challenges but should be in to do for zerodha.
Pledge experience is not so good but that is expected to go away soon once CDSL is ready with resolution.
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This is one thing where zerodha is lagging massively compared to other platforms. The price feed from BSE is useless if the stock is listed on NSE too. The holdings exit directly when on BSE is 99% of time at a loss for me. I’m sure it would be approximately same for all who trade atleast 10k rupees worth of shares in a particular script. Have to remember to select the NSE radio button always while selling.
Selling by keeping the stocks in watchlist wastes a lot of time and not at all feasible for a full time trader as you have to type in the quantity manually. Remember, every second counts in trading and selling should be quick.
The obvious fix that I hope is allow the user to select to show feeds from which he bought the shares or option for showing NSE or BSE feeds only. I would be happy even if you make me select it everyday, it would be a one time job for me daily and not remember to do it for every trade.
If the exchange has this rule, then nobody is implementing it apart from zerodha orelse the volumes in BSE won’t be less than 10 percent of NSE. All the biggies only trade on NSE and liquidity is only on NSE.
If this is absolutely mandatory for you, maybe you can reduce the hard limit to show BSE positions to 5k-10k rupees instead of 50L is what I believe is now. A person, if by mistake sells 40L on BSE vs NSE, he would be pretty angry. You can take a feedback regarding the limit from people here in the forum. I think 10k is fair.
This will take some time but will happen.
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does interest get subtracted at the end or daily? &
can interest rate can be calculated as expense for STCG or LTCG ?
Hi,
I am new & I recently start using MTF in zerodha. I would like to ask what are different scenarios when my mtf trade will get squared off by zerodha?
I searched for Upstox and got to know that positions will be squared off when following conditions will be met :
- Failure to pledge the shares by 9pm of the purchase date.
- Margin shortfall : if there is any margin shortfall, shares will be squared off 4 days after the shortfall occurs.
- If account goes under debit/negative balance , shares will be squared off after 7 days.
Can someone answer these questions for me with respect to zerodha mtf?
Zerodha’s Margin Trading Facility (MTF) allows clients to trade using borrowed funds. To manage risks, Zerodha may square off positions under certain conditions
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If the pledge request for MTF not accepted on trade day, MTF shares will be converted to CNC holdings. We will give T+1 day to the client either to fund the account or square off position. If no action taken from client end we will square off on T+2 days.
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If the client account is in debit more than 20% of initial margin funded by client, we will square off MTF position proportionately to recover the debit balance. For example, if a client funds ₹50,000 and trading account is in debit of 10k , Zerodha may square off positions proportionately to recover the debit balance.
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If client loses more than 80% of overall value of zerodha funded margin we will square off the position irrespective of clients cash balance. Client can convert the position to CNC by funding full amount (as of now conversion not possible, we will provide soon)
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Changes in stock category: If a stock held under MTF is reclassified and removed from Group 1 securities, Zerodha notifies the client and squares off the position within one week. For example, if a stock is moved out of Group 1 on December 1, the position will be squared off by December 8 if not closed by the client.
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Corporate actions: Zerodha squares off positions one day before the ex-date for specific corporate actions like mergers, except for bonuses, stock splits, dividends, and rights issues. For example, if a stock’s ex-date for a merger is December 10, the position is squared off on December 9.
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If the client account is in debit and the client lost 20% of the initial margin, we will square off the MTF position anytime proportionately to recover the debit balance. The loss-making position will be given priority. Always maintain a positive balance in the account.
Auto square-off charge of ₹50 + GST applied to each squared-off position. We will post the detailed article soon.
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@Ragavendran_M thanks for the answer.
I have few more questions :
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suppose I have negative balance on my ledger -10000 , so till the time a conditions comes where zerodha needs to square off my trade proportionately or fully , will this -10000 amount incurr a penalty interest rate of 0.05% daily ? 0.04% daily interest on funded amount is additional. Did i understand correctly?
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suppose i take one trade where client funds 25000 and zerodha funds 75000, if share price falls and client has now -5000 loss, so he adds 5000 to his funds which will compensate for the negative balance as you stated. now if the stock price again comes back to original buying price, will this free my 5000 rs that i added as margin requirement?
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suppose i take one trade where i fund 50000 and zerodha funds 50000 and my shares price doubles, will profit of 1 lakh shows on my ledger and can i add more shares as the total leverage given by zerodha falls w.r.t to total value of shares
please explain with examples.
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Yes both the interest will be charged.
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Yes, the loss will be reversed back till your buy average price. For example, your average price of the MTF share is 100, if the stock falls to 90, Rs.10 will be debited and if the stock price moves again to 100 Rs.10 will be credited back.
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Unrealized profit will not be added. Only if you close the position profit will be added to your ledger.
Thanks @Ragavendran_M
Few More questions :
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0.05% daily penalty interest rate on negative balance and 0.04% daily interest on funded amount, both these interest will be charged everyday (365 days a year) including holidays. It will not be charged only on trading days, is it right?
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Suppose
(i) I purchase 1000 shares of ABC company on 1 jan in CNC
(ii) Again , I purchase 1000 shares of ABC company on 1 feb in MTF
(iii) Again , I purchase 1000 shares of ABC company on 1 march in CNC
(iv) Again, I purchase 1000 shares of ABC company on 1 april in MTF.
So as per my understanding , if i have to square off my CNC position , i will go to my regular order and sell 1000 shares from there and it will be squared off from CNC shares on first bought first sold basis.
Also if i have to square off my MTF position , i will go to my mtf order section and sell 1000 shares from there and it will be squared off from MTF shares on first bought first sold basis.
Is this undertsanding correct? basically my question is that we are not merging the shares of CNC and MTF with each other, right?
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Suppose , I have 100 shares of company A worth 50000 rs , can i sell it today and get all the money available which is 50000 rs on my account balance so that at the same time just after closing my position, i can buy those 100 shares of company A using MTF.
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This question will be exactly opposite of question 3 :
Suppose i buy 1000 shares of company A worth 1 lac rupees where zerodha funds 50000 and i paid 50000, now shares have doubled , can i sell my shares on the same day , get my 1.5 lakh rupees on my account balance and then i will add additional 50000rs on my fund balance and buy all those shares again on the same day in CNC. (I know zerodha is going to bring convert to delivery soon but still i want to know if this scenario will work) -
suppose i bought 2 lacs worth of shares in MTF , 1 lac is funded by zerodha, now just assume my shares doesn’t go anywhere for 1 year (i hold it for a year), so i will be charged 40 rs per day. so on my ledger balance on day 1 will be -40, day 2 will be -80 and so on. so after 1 month , it will be -1200 rs on my ledger, so i can add 1200 rs and can bring down my ledger balance back to zero, is this right?
- Yes, it will be charged all days.
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Yes, it is correct.
In P&L statement P&L will be calculated based on a FIFO basis irrespective of MTF/CNC. -
CNC sell credit can’t be used to buy any MTF on the same day.
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You are buying and selling on the same day, so it is an intraday profit that can’t be used till it gets settled on T+1 day.
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Along with interest, delayed payment charges also will be incurred as your account is in debit. So always maintain a trading account with positive cash to avoid delayed payment charges.
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Nope, not allowed.
Any updates on mtf to cnc conversation and vice versa. Any update about amo and gtt for mtf segment.
Any update on increase in Total limit of MTF from present limit of 50.00 Lakhs?
AMO for mtf should come in a weeks time but conversion will take more time.