MTF closed beta for TradingQ&A users

Zerodha Feature Announcements
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Please DM me your ID, I can arrange a call.

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Whatā€™s The Timeline For Public Release

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Please provide me MTF facility. I had filled the form. If I buy stocks through MTF option and sell share in same day at 3:29 pm, then what is the charges?

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There wont br any interest charge on this trade. It will be considered as intraday trade.

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Annually it is almost 15%. While most Mutual Funds give 15 to 20% return, you are earning 15% easily as interest So oneā€™s stock must move more than 15% to become profitable.

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MTF is specially made for swing traders, and swing trades wonā€™t last more than a few weeks.
Iā€™ve been using MTF on FYERS until Zerodha activated my MTF.

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I have filled form for mtf and get call from support they said it will activated by one day but still I canā€™t get mtf option on buying window itā€™s has been 4 days since I filled up form.

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Can you DM me your id?

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(post deleted by author)

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And also for long term investors. MTF is equally beneficial for all segments of traders and investors. I have personally held MTF investments via MTF for more than 2.5 years.

I maintain a seperate portfolio for both trading and investing. In my investing portfolio, I am always levered to the tune of 10% to 30% depending upon opportunities.

Rational interest rates are being provided only by mStock and HDFC Sec and ICICI Direct.

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Hello @siva @VenuMadhav Hope youā€™re doing well. Thereā€™s some feedback on the MTF product.

(1) MTF entries and exits work smoothly as it should, and it feels like a natural extension on Kite. No complaints there. However, the pledge window is short, so kindly consider extending the window to either 9pm or directly jump to SEBIā€™s new auto-pledge circular. Latter would be preferred.

(2) MTF list includes a good amount of equites and ETFs, but I feel the list of MTF universe can be expanded a lot more.

(3) Exposures are good and I feel they should remain the way it is now.

(4) The most important aspect, MTF should get its own ledger seperate from equities, so that I can pay down the MTF book frequently and continue trading (such as on ICICIdirect and recently with AngelOneā€™s MTF pay-in option). For example, letā€™s say I have 200 in my trading account and the MTF exposure on the stock, is of 2x, so cash of 100 should be blocked and maintained separately on the MTF ledger meanwhile leaving the other 100 in account free in the equity ledger. This will significantly add value to my investments and help me size positions appropriately.

Another example, letā€™s say my account cash size is 500, and I will want to lever only 10% i.e. 550 while diversifying into different stocks, in different days. If thereā€™s no seperate MTF ledger, I canā€™t do that unless I buy seperate stocks with my desired exposure on the same day which would compromise in entries and position sizing.

Thanks!

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  1. Yep, pledge window MTF pledging should go away from Nov 11, so itā€™ll be a better experience for MTF users.
  2. Since it is in beta, the MTF-approved list is small; weā€™ll slowly include more stocks.
  3. Weā€™re following Var + 3/5 times ELM. Currently, no plans to change this.
  4. Even though you can add funds to the equity segment and trade in MTF + non-MTF. End of the day, MTF margin requirement is moved to MTF ledger and the remaining funds are available to trade in any segment you wish. You can see a clear bifurcation in Console statements for EQ and MTF.
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Thanks @TheGouda Appreciate your response.

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I have filled the form for mtf before 2 weeks, but it hasnā€™t been activated yet
Id - KZW268