MTF(Margin Trading Facility)

[VenuMadhav]

@agrawal_prateek

Option to add more cash to the particular MTF Stock Purchase to reduce interest - I have seen this option on ICICI Direct where you can add cash later on for that particular stock purchase. Currently in many other brokers we can not do that.

If you have enough cash, you can convert your MTF position into a delivery position.

@agrawal_prateek

Pre Pledging of MTF Stocks - It is currently available in mStock, I have not seen this option with other Brokers.

Requirement for the client to enter OTP to pledge is going away effective October 14, 2024. Refer circular

@agrawal_prateek

Trigger Price Dsiplay for every stock - There should be a way to see the trigger price of every stock so that people know at what price the MTF stock would be squared off, People can use option 1 to decrease the trigger price. ( This is available with ICICI Direct)

We will take this feedback

@agrawal_prateek

Unlimited Holding Period of MTF Stocks - Currently many brokers have less than 1 year holding, mStock provides more unlimited period holding time for MTF Stocks. This helps investors in saving the short term capital gains tax as they can keep holding.

We don’t intend to square off positions unless there’s margin shortfall or a complex corporate action (de-merger etc). FYI, most brokers tend to close positions for splits and bonuses too.

@agrawal_prateek

MTF Calculator - I saw only calculator on dhan website for MTF. It is important to plan your investment otherwise people don’t consider many exchange charges. I hope Zerodha would make a calculator in which person can edit a) Interest rate b) holding days c) Entry Price d) Exit Price. MTF Calculator - Calculate Interest, MTF Charges & Margin Available | Dhan

hmm, we’ll take this as feedback

@agrawal_prateek

Margin Freeze for that investment- As MTF margin requirement for the exchange changes on daily basis for every MTF stock, many broker change the margin requirements for your holdings on a daily basis. In Kotak this margin is fixed at the purchace date and does not change afterwards. If you make a fresh purchase in this stock then the new margin would be applied.

Same, margin is charged basis what was applicable on the day of trade. However, if the stock price falls that triggers an MTM call, and if the client isn’t able to fulfill, the positions will be squared off.

@agrawal_prateek

8. Low interest Rates- Franky speaking 18.25% (.05 * 365) would a BIG failure for Zerodha and it wont attract any new customers. ICICI provides 9.67%. So may be Zerodha should revise their charges . Margin Trading Funding - MTF Facility by ICICI Direct

We’re charging 0.04% day.