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MTF Calculator

MTF charges calculator helps you understand interest and other costs associated with margin trading.

MTF Logo

Find the Stock

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Current Market Price

Lock

Selling Price

Quantity

Holding Period

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

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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?

An MTF calculator helps in figuring out the costs related to interest and brokerage involved in margin trading. With the MTF calculator, you get a complete picture of the interest on borrowed funds for the specified period. In India, SEBI has prescribed clear disclosure of these charges.
Understanding all the charges beforehand is crucial for making informed financial decisions. Dhan’s MTF calculator accomplishes just that. The MTF calculator helps you understand two key aspects:

  • Leverage funded by Dhan.
  • Interest on borrowed funds.

Once the charges are clear, investors can make informed investment decisions regarding whether it is worthwhile to proceed with the stockbroker.

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.

Certain fields such as brokerage, required margin and funding amount are pre-determined. Current market prices are auto-fetched from the market. Once the above fields are added, the amount (known as margin) to be brought by you, amount to be funded by Dhan and interest is known.

Understanding MTF with an example

To understand MTF better, we take 2 situations.
  1. 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.

  2. 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.

With MTF, Mr. X made a profit of ₹56,058 as against Mr. A’s ₹15,000 without using MTF.

Frequently Asked Questions

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.

Absolutely! MTF interest gets calculated from the day you purchased shares using MTF facility till the day you sell the shares taken under MTF. This includes all the trading as well and non-trading days.


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Attention investors:

  1. Stock brokers can accept securities as margins from clients only by way of pledge in the depository system w.e.f September 01, 2020.
  2. Update your e-mail and phone number with your stock broker / depository participant and receive OTP directly from depository on your e-mail and/or mobile number to create pledge.
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Note: As a policy we do not give stock tips or recommendations and have not authorized anyone to give this on behalf of us. If you know anyone claiming to be a part of Dhan / Moneylicious / Raise or our associate companies or partners and offering such services, please report us on help@dhan.co. Important Information for Investors: To prevent unauthorized transactions in your trading / demat account, do not share your account details, credentials or any personal details with anyone. Keep your mobile number updated with your Stock Broker, Depository Participant and ensure that the same is registered with Stock Exchanges, Depository and KRAs. You will receive alerts and information on your registered mobile number / email for debit and other important transactions in your demat account directly from CDSL / Exchange on the same day. KYC is one time exercise while dealing in securities markets - once KYC is done through a SEBI registered intermediary (Stock Broker, DP, Mutual Fund, etc.), you need not undergo the same process again when you approach another intermediary. No need to issue cheques by investors while subscribing to IPO. Just write the bank account number and sign in the application form to authorise your bank to make payment in case of allotment. No worries for refund as the money remains in investor's account. This is issued in the interest of investors.


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