Lets say if i bought stock worth 3 lakh with my 1 lakh INR with MTF and hold it for 1 year.
Therefore interest would be around 40 x 2 x 365
because it is 40 ruppees per lakh and I have borrowed 2 lakh for above purchase.
Now say after 1 year if the stock appreciates and now it’s worth 6 lakh.
How would the interest be calculated ? Will it be same as the previous year or will it be on the new value ?
Interest will be charged only on the amount you borrowed (₹2 lakh), not on any appreciation in your stock holdings.
So, even if you hold your position for a year and your shares double or triple in value, you’ll still pay ₹29,200 as interest regardless of how much your shares grow.
On this page, it shows “Invested amount”
Lets say I’m buying stock worth 100000 (1lac) using MTF
For discussion sake, lets say I put in 50k, and zerodha funds me 50k (2x leverage)
So invested amount in the above MTF calculator, means 50k which zerodha has funded me? or 1lac which is total value of position?
