MTF charges calculator helps you understand interest and other costs associated with margin trading.
MTF Summary
Buy Value
₹ 00.00
Sell Value
₹ 00.00
Your Fund
₹ 00.00
Funded by Dhan
₹ 00.00(0X)
Transaction Charges
₹ 00.00
Profit
₹ 00.00
Returns without MTF (%)
00.00%
Returns with MTF(%)
00.00%
Exchange Turnover
₹ 00.00
Exchange Transaction Charges
₹ 00.00
Securities Transaction Tax STT
₹ 00.00
GST
₹ 00.00
SEBI Turnover Charges
₹ 00.00
Investor Protection Fund Trust IPFT
₹ 00.00
Clearing Charges
₹ 00.00
Stamp Duty
₹ 00.00
DP Charges
₹ 00.00
Brokerage
₹ 00.00
Pledge / Unpledge Charges
₹ 00.00
Interest Amount
₹ 00.00
Total Tax & Charges
₹ 00.00
Introduction to MTF
MTF, or margin trading facility, enhances your buying power for stocks with facilities made available by stock brokers. Consider MTF as an option that increases your capacity to buy stocks. In margin trading, investors contribute a certain amount, and the balance is funded by stock brokers at a predetermined rate of interest.
What is an MTF Calculator?
How to Use an MTF Calculator Online?
Step 1: Select the stock
Select the stock in which you wish to invest. If the stock is not available, it means that the leverage is not available for that particular stock.
Step 2: Add Quantity
Add the quantity of the intended stock to be purchased.
Step 3: Holding Period
Add the holding period in days.
Understanding MTF with an example
Investing without MTF
Assuming Mr. A has ₹1,00,000 and he invests in buying the shares. If the shares gain 15% after 30 days, he makes a profit of ₹15,000.
Investing with MTF
Mr. X has ₹1,00,000 and he wants to invest in a stock. Assuming stockbroker offers him 4x leverage for a particular stock, Mr. X can now invest upto ₹4,00,000. After 30 days, the stock gets appreciated by 15%. This results in a profit of ₹60,000 on ₹4,00,000 (invested using MTF). The interest amount for 30 days at 15.99% annual rate on ₹3,00,000 (MTF amount) comes at ₹3,942.
The answer to this is both - Yes and No. Margin funding can be beneficial if a stock moves above your purchase price, provided you are able to cover interest costs and brokerage from the profits.
No, MTF cannot be used for intraday trading.
Yes. SEBI has mandated to pledge all the stocks purchased under MTF until the borrowed amount is paid off.
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