Swing Traders Pain for MTF (Margin Trading Facility) E-Margin

Not in the first phase, margins will be required in the form of cash.

Ok atleast bring MTF in soon time.

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@VenuMadhav waiting for long time , please bring first somthing in kite disabled MTF button atleast

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Kite team discussing where to place MTF button and soon be available in 2050

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And instant unpledging of liquidbees is also getting implemented any time soon! P.S - Please team, revert to the thread!!! @Meher_Smaran @MohammedFaisal @nithin

We are taking this live very soon. We’ve been telling this for a while now but hoping to close this soon :pray:

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@nithin kindly provide margin on stocks whxih could be used for all segments inculiding delivery of shares simalar to that offerred by Dhan. If failure to clear obligation stock bought could be sold off on T7.
I believe all fullservice brokers provide this feature and the only discount broker is DHAN.
Would be extreemly greatful if pledge margin could be used in all segments as this will help me to earn some money lying in my bank account, for my coffee whixh obviously i can share with you :stuck_out_tongue_winking_eye:

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Any update on this sir

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Yes, please provide an update if possible. @MohammedFaisal

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I had ICICI Direct account long Back , ID is not good for Traders as well as for Investors

Recently i met one of the Portfolio Manager according to him MTF is calculated on Yearly Basis only , whether you hold it for one day or for one Year

It was about deduction of interest from ledger

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I used to trade below brokers for MTF and their pros and cons
1.ICICI Direct
Pros
-More flexibility to convert positions from MTF to Delivery
-Covers almost all stocks and ETF for MTF
-Upto 5x for bluechip stocks
-Hold position upto 365 days
-Zero upfront amount by pledge your existing shares as margin
Cons
-Higher interest rates from 10% to goes upto 21%
-Need to pay brokerage for MTF though it consider as delivery.

2.Angelone
Pros
-Higher Margin for bluechip stocks upto 5x
-No brokerage for MTF
-Take margin trading position by your pledged margin from stocks.
Cons
-i dont think its MTF,coz if you have 10,000 in your cash and want trade only 25,000 so upfornt is 5,000 and angel one gives 20,000 so after trades taken your ledger becomes 15,000 as negative balance they block all the cash available and rest amount available will be adjusted and shown as negative balance so you cant trade further only adding margin due to shortfall,wont average or taken further trade ,i think why they call as MTF
-Only 90 days of Position holding periods.
-Higher pledge charges(20+Tax)
-standard industry interest rates

3.Dhan
Pros
-Covers almost All stocks and ETF.
-Take position by pledge your existing stock but only upto 5 days.
-Lower pledge charge in industry(12+tax)
-Flexibility to convert positions
-Holding periods are unlimited
-You can Average positions alike angel one
Cons
-lower margin for 65% of stocks and ETF upto 2x only
-standard industry interest rates

If zerodha comes with diff model in MTF segment will be good ahead in market in terms of pricing.

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I’m glad someone said this (pricing is key). At the end of the day, THIS IS BUSINESS.

I’m very happy with ICICI direct {(9.69+0.07) + applicable charges and taxes}.

Their platform is stable and the app gets the job done. Pledging is smooth with reminders from broker + NSDL.

For me, unless zerodha beats ICICI in terms of costs (MTF pricing), I AM NOT SWITCHING BACK.

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Angel mtf works in the best way, which you have misunderstood. you have to first take positions and then pledge it, you will get margin money from that and then you can take mtf positions from that margin money. advantage is as long as you have positions less than your account size, no interest will be charged, since margin is calculated at portfolio level, and not on individual stock level like icici

So If my portfolio is 1 Cr and let’s say MTF allows me to take positions worth 2 Cr, with angel I CAN’T exploit the full potential of MTF on T day. (since pledging and giving margin against that will take 1 day)

So I buy worth 1 Cr & pledge on same day. Next day, applicable margin power becomes available.

Is this correct or angel gives margin on the same day in anticipation of pledge?

Pledging can only be done once the securities are in your demat account. Angelone provides instant pledge margins.

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Is this allowable by this way angelone is giving delivery of stocks under pledged margin right .

I thought of using LAS for swing trading, but as part of terms and conditions.

“I agree to not utilise any borrowed amount towards trading and investments into capital market securities.”

Then what is the point of using this LAS facility, it should not bother where we are investing as long as they are getting the monthly interest payments.

I am confused totally now, so it seems MTF is a necessity don’t know why some guys are mentioning LAS for swing trading.

Because it would be a double hammer if market goes down.

Value of your pledged securities goes down so you will have to add funds.

But your stock also has gone down so you cannot withdraw it at loss since you cannot cover the payments then.