Will Zerodha adjust margin amount if MTF leverage increases after purchase?

General
1

Suppose I bought AARTIIND stock (700 qty) using MTF on 1st Sept 2025 at ₹397.50.

At that time, Zerodha provided a leverage of 3.16x, so my margin requirement was ₹88,053.80.

Today, when I checked the MTF approved securities list, the leverage for AARTIIND is showing as 3.22x.

Based on this new leverage, the required margin would be ₹86,413.04.

My question is —

:point_right: Will Zerodha automatically adjust and credit the difference (extra margin) back to my wallet when leverage increases?

Or

:point_right: Will the margin remain as it was at the time of purchase, with no adjustment?

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2

Hi @dhiraz266 , once an MTF position is created, the margin requirement is based on the leverage available at that time. Any later change in leverage doesn’t affect existing positions, as they continue under the same funded value.

So even if the leverage for a stock is increased later, it won’t impact your existing MTF position or release any margin back. The revised leverage will only apply to any new MTF purchases.

2 Likes
4

Hi @bharat1080 , the initial margin you bring in for an MTF position doesn’t change with stock price movements. However, based on the price movement, MTM obligations will be blocked or reversed in the ledger.

If the price falls, additional funds will be blocked as MTM obligation blocked for MTF to cover the loss. When the price rises again, those funds will be released as MTM obligation reversed for MTF. More here.

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5

@nithin_kumrr Any update on allowing Mutual fund and stocks as collateral for MTF? It has been months now.

6

We’re working on it, but we don’t have a specific timeline to share yet.

7

Noted , would be helpful for MTF users if implemented.

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8

I remember Dhan charging me additional margin because of stock volatility. Not sure