Enter your current MTF details and discover how you can save with m.Stock’s eMargin
- Expected MTF Turnover (₹)
- Current MTF Interest Rate (%)
- MTF Subscription Charged (₹)
- MTF Orders
- Brokerage Type
- Brokerage per MTF Order (₹)
- Brokerage % on MTF Transaction
As per your Inputs
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MTF Traded Value
₹ 0
Across Orders -
Funding Value
₹ 0
Calculated assuming 80% of the turnover
m,Stock
-
Effective Interest Rate
0%
-
Annual Interest
₹ 0
-
Brokerage Charged
₹ 0
-
Subscription
₹ 0
Total Expense ₹ 0
(Annual Interest + Brokerage + Subscription)
Your Broker
-
Effective Interest Rate
0%
-
Annual Interest
₹ 0
-
Brokerage Charged
₹ 0
-
Subscription
₹ 0
Total Expense ₹ 0
(Annual Interest + Brokerage + Subscription)
Overall saving with m.Stock
₹ 0
What is Margin Trading Facility (eMargin)?
Margin Trading Facility (eMargin) is an exchange approved product facilitating delivery trading with up to 80% funding from more than 700 mtf stocks list at interest rates as low as 6.99% p.a. The eMargin facility is available to m.Stock clients at no additional subscription fees or hidden charges.
An Example to Understand MTF Better
Say you want to buy 30,000 shares of Reliance Industries Ltd. currently trading at a market price of ₹2,340. Your total trade value comes to ₹7.02 crore. To take this position, you will need 25% of the trade value i.e., ₹1.75 crore as margin. To fund the balance ₹5.26 crore, you can use m.Stock’s Margin Trading Facility (eMargin). m.Stock provides 75% funding in Reliance Industries Ltd.
In the above case, since the funding amount is above ₹5 crore, the applicable interest rate will be 6.99% p.a. Now suppose you hold this position for one year wherein the stock gains 20% and moves to ₹2,808. The market value of your position would now be ₹8.42 crore (₹2,808 x 30,000 shares = ₹8,42,40,000) and the profit would be ₹1.40 crore.
With MTF from m.Stock, you can take a leveraged position of up to 80% of your total trade value
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Available Margin₹1.75 crore
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+
-
m.Stock Pays₹5.26 crore
-
=
-
You can buy stocks worth₹7.02 crore
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Interest rate applicable
6.99%
- Interest charged during this 1 year @ 6.99% would be ₹36,80,235 (₹5,26,50,000 x 6.99% x 365/ 365) and your net profit would be ₹1,03,59,765 (₹1,40,40,000 - ₹36,80,235).
- If you had not used MTF, you could have bought only 7,500 shares. In this case, even after a 20% gain, the market value of the position would be ₹2,10,60,000, generating a profit of ₹35,10,000. By opting for MTF, you would have made an additional profit of ₹68.49 lakhs!
- *The mentioned % is only for reference. Actual value may vary based on the stock selection.
With MTF
- Actual profit
- Brokerage
- Subscription
- Interest cost (from 6.99%)
- ₹ 1,40,40,000
- ₹ 0
- ₹ 0
- ₹ (36,80,235)
Net profit
₹ 1,03,59,765
Without MTF
- Actual profit
- Brokerage
- Subscription
- Interest cost (from 6.99%)
- ₹ 35,10,000
- ₹ 0
- ₹ 0
- ₹ 0
Net profit
₹ 35,10,000
Benefits of Margin Trading Facility (eMargin)
Here are some of the advantages of using the Margin Trading Facility
Enhanced Buying Capability
You can buy up to 80% more than the available fund balance in your trading account using the Margin Trading Facility.
Low Cost
You can take the advantage of margin funding to trade in larger quantities by merely paying the interest cost.
Higher Net Returns
As you pay only 20% of the total trade value while the broker funds the balance 80%, it results in higher net Return on Investment (ROI).
Fills Liquidity Gap
Traders often lose out on great short-term buying opportunities due to lack of funds. This gap can be filled with Margin Trading Facility.
How is m.Stock’s MTF Unique?
%
Lowest interest Rate
Now you can do MTF trading at one of the lowest interest rate in the industry
| Funding Value | m.Stock’s Effective Interest Rate |
|---|---|
| Up to ₹5 Crore | 9.99% |
| Above ₹5 Crore | 6.99% |
MTF interest rate will be charged on the gross total funding amount availed from m.Stock irrespective of the number of positions taken.
| Features | m.Stock | Industry |
|---|---|---|
| 1. Lowest interest Rate | 6.99% - 9.99% | Upto 18% |
| 2. Pledging | Pre-pledge | Post Pledge |
| 3. Pledge Charges | ₹32^^ | Upto ₹35 |
| 4. Holding Period | Unlimited | 365 Days |
| 5. Number of Scrips | 700+ | 200 - 900 |
| 6. % Funding | Upto 80% | 50% - 70% |
| 7. Subscription Charges | ₹0 | Upto ₹10,000 |
| 8. Hidden Charges | No Hidden Charges | Low interest rate against subscription charges, holding period & interest period |
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9. ZERO Brokerage
While using Margin Trading Facility (MTF) via m.Stock, continue to pay zero brokerage on all your trades
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10. 3-Click Process
With the quick & intuitive platform interface, you can trade in eMargin in just 3 simple clicks
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11. Clear Tracking
You can track all our MTF positions in 1 click under the positions tab in your app & web
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12. Superior Return on Investment
With zero subscription fees and brokerage charges, your effective ROI increases manifolds
Open your Lifetime Free Brokerage Account
Here's all you need to know about Margin Trading Facility
With the margin trading facility, you can generate short-term profits by pledging the same shares. You can maximize your gains with the leveraged positions. While MTF trading can be advantageous in more than one way, you must gauge your risk appetite and follow risk management.
The Required Margin in MTF trading is the minimum amount of margin that you need to pay for entering into the trade. For example, if the broker offers an 80% margin of the total trade value, then the balance of 20% that you pay is termed the ‘Required Margin’. The required margin must be maintained at all times to avoid auto square-off of your position.
m.Stock’s Margin Trading Facility (eMargin) has one of the lowest interest rates starting at 6.99% p.a. for funding above ₹5 crore. For funding up to ₹5 crore, 9.99% p.a. interest is applicable. MTF interest is charged. There are no subscription fees or brokerage on eMargin trades conducted at m.Stock.
In MTF, interest will be calculated on the gross funded amount for the number of days you hold the position open. So, if your funding amount is Rs 25 lakhs and you hold the position for 2 months, then the applicable 9.99% interest rate will be charged for 2 months on a pro-rata basis.
With m.Stock's eMargin, interest will be charged for the gross funded amount for the number of days that you hold the position.
Interest charged on MTF (eMargin) trades reduces as the accumulated funding amount goes up. For total eMargin funding of up to ₹5 Crore, a 9.99% p.a. interest rate is applicable. However, if the funding amount goes above ₹5 crore, interest rate drops to 6.99% p.a., which is one of the lowest MTF interest rates in the industry.
In Margin Trading Facility (MTF), or e-Margin, the duration for which you can hold a position varies depending on the broker's policies and regulatory guidelines. Most brokers may allow you to hold positions for up to 365 days (1 year). m.Stock, on the other hand, allows you to hold your e-Margin positions indefinitely as long as you meet the margin requirements and pay the applicable interest. However, it's crucial to monitor your positions regularly and ensure you maintain the required margins to avoid forced liquidation. Always check your broker’s terms for specific holding periods.
MTF trading can be profitable, offering leverage that allows you to take larger positions with less capital. This can amplify gains if the market moves in your favour. However, it also increases risk, as losses can be magnified. The interest costs associated with MTF can also impact profitability. It's essential to have a well-thought-out strategy, understand the risks, and regularly monitor your positions to maximise the potential for profit while managing risks effectively.
Yes, in Margin Trading Facility (MTF), interest is typically charged on the borrowed funds for every calendar day, including trading holidays and weekends. This means that even when the stock market is closed, the interest on your margin loan continues to accrue. It's important to factor in these costs when planning your MTF strategy to ensure that you are aware of the total expenses involved and can manage your investments effectively. Use m.Stock’s MTF calculator to accurately assess your e-Margin requirements and associated interest amounts.
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