In the 1920s at a conference filled with world renowned physicist, a startling revelation was made - Observer can collapse the wave function (influence the outcome of an experiment). So u r right. In a similar vein, whoever looks in to the same set of data can have their own inferences… 
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I’m not sure I’ll succeed, but I’ll be glad to try,
Tell me where should I start? 
Overtrading is for sure a way to lose money. I completely agree with @nithin . Also it takes a lot of love for customers for a broker to say this. They will usually give you reasons to overtrade .
We did tick by tick analysis to see that you need to be in a position at max 20% of the time in the market and rest of 80% must be spent analysing it.
There is a theory called fundamental law of active investing. I hate the name - as in implying its as precise as physics - but neverthe less. It goes something lik IR = IC*√Breadth
IC is the Information Coefficient
Breadth is the number of investment decisions in a year
You can apply this in any time scale. Basically this means if your skill is less you need more active bets in the market. The otherway to look at this is that if you are trading a lot - it usually implies your skills might not be adequate.
What is overtrading though ?
For someone, trading 3 trades a day might be overtrading. For someone else taking a multiple of that might still be ok. I take 1000+ trades in a year in both of my systems and i don’t consider it overtrading. If i take fewer - only the ‘best’ signals say - it makes it worse in some significant ways. I am not scalping.
Ultimately this is all a balance between edge per trade, returns, Drawdowns etc.
It is over trading only when it makes your system worse in some significant metric or if it makes your system too fragile. A trader with edge and understanding will not do that. I trader with lack of control might.
In India where other costs are so (unfairly) high, i don’t think brokerage costs (10/20) will make much difference in perception of costs ( that leads to overtrading if brokerage is reduced) for anyone who has done even a little bit of work. Only people with low capital might feel the effect of very high costs even by Zerodha ( high % ), enough to move to other brokers.
Foreign studies are in context of possibly ultra low execution costs where brokerage costs might be more significant.
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If they start mtf facility they would be able to charge interest on the borrowed amount and what’s the issue in charging brokerage for mtf not for cnc
all other brokers like dhan and iifl are charging brokerage same as in intraday for MTF
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Asthatrade is fooling customers. Their 3.99% is only upto 1 lakh . No serious trader would borrow only that much.
Their real rate is 9.99% . Then 0.2% on equity delivery specially for MTF. That high equity delivery for short term/swing traders, brings the real interest to far higher near to 18% even.
This kind of trickery brokers, I like to stay away from. Don’t know what other booby traps are there! Zerodha is at least honest.
ICICI also charges 0.1% on both sides! 9.75% doesn’t matter, unless you want to keep the stock for long term.
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Hey @nithin pricing at Rs 20+gst per order may be cheap for larger quantities but is too much for traders who trade in one to two lots. Will Zerodha be able to keep the same pricing after the evening session?
Is mstock the best for mtf? Confused between mstock and hdfc sky to choose. Others mostly have higher interest rates or %brokerage plans.
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MStock reporting quality is garbage. You can’t even download trades. I used browser plugin to capture displayed trades.
Yes, MTF is honest here and charges are zero. You get low interest rate as advertised and I calculated that you really get it. They have decent list of stocks for MTF.
But, You don’t get CDSL easiest. You can’t convert MTF to delivery. Their pre-pledge system is seriously problematic, because you can’t enter MTF order without pledging and you don’t have the ability to choose post-pledge from pre-pledge.
They also do not have serious F&O. Without pledging system, who does F&O.
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Yep, we are taking this project up now. It will probably be a hidden feature though as we wouldn’t want all customers to be borrowing to invest.
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GREAT!!
Many swing traders will appreciate this move. 
I think it should be the customer’s choice.
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Also, please keep the option of selecting the margin while placing the order. I find MTF very useful but I always try to restrict the leverage to <= 2x.
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@nithin - While its nobel to state the following “Also, maybe the reason we haven’t prioritized is that we fear that all customers of ours today don’t take leverage while investing and might start doing it if we launched this feature. Leverage is the biggest culprit for investors or traders not making money. Even though this will add revenue, this is maybe why we have taken so much time on this”. However you are offering options and as per SEBI survey 90% of the people. May be Zerodha should also stop options then.
Anywho I have moved to AngelOne since EMF facility isnt available with Zerodha. While be glad to move my funds to Zerodha when EMF is available.
Also you guys still charge for minor account changes like linking of new bank account and all, which other brokers dont charge hence in the interest of our large customers statement still doesnt make sense.
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@nithin
Wondering this low margin requirement led to rampant speculation, increasing leverage dramatically, and when the market crashed, many investors who use margin may wipe out . Eventually increase the market crash .
We already have 99 % Loss rate in derivative and other speculative trade , Are we going to convert the Swing and Long term investment to another type of failing speculative trade ? .
MTF bridges the gap between the Future and Equity delivery.
The pace at which it is getting popular, I think it is going to be the next normal very soon.
@itsadam Yes but the rate of interest, borrowing limit, and holding period have to be good, to make it work.
In Mstock there is no upper cap on the holding period and fund amount, plus the rate of interest is lowest as compared to any other brokerage firm, and that is why they registered the highest growth in their MTF bucket, despite their poor platform.
Hi, Angelone convert the MTF pledged shares into delivery if it encounters cash margin in your account. I haven’t figured how to utilize in angelone till date. Its just an eye washer. Yes, you can try upstox instead(Though the margin is only 1x , not a bad thing to start).
Disc : I haven’t tried MTF yet, I am not sure how to manage risk per trade with that. Once ,its clear may be will try in future.
Hey, we’re hopeful of being able to launch MTF for a select set of clients by the close of this Financial year. Once tested, the option to buy in MTF will be available for all users.
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To begin with, MTF will be available with only cash margins, once we’ve stablized the process, we should be able to accept collaterals as margins for trading in the MTF segment.
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