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Margin Trading Facility

Margin Trading Facility

Starting at 12.49% p.a.

Get 4X leverage with MTF. Now buy more with less money.



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Benefits of Using MTF

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Leverage on 1,000+ Stocks

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Competitive Interest Rates

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Unlimited Holding Period

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Place Trades Using Cash or Collateral

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Trade Multiple Lots

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Place Forever Orders

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Same Order Flow

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Switch MTF Position to Delivery

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Convert MTF Holdings to Delivery

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Separate Tracking

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Sell MTF Holdings Instantly

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Interest Starts after Delivery & Ends on day of Sell

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MTF Interest Rates on Dhan

SlabAmount Funded by DhanInterest Rate (p.a.)
1Upto ₹ 5,00,00012.49%
2₹ 5,00,00.01 to ₹ 10,00,00013.49%
3₹ 10,00,00.01 to ₹ 25,00,00014.49%
4₹ 25,00,00.01 to ₹ 50,00,00015.49%
5Above ₹ 50,00,00016.49%
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MTF Interest Rates Explained

MTF Purchase ValuePaid by YouFunded by DhanInterest Amount (per day)Interest Rate (p.a.)
50001,2503,7501.2712.49%
5,10,0001,27,5003,82,500130.8812.49%
10,00,0002,50,0007,50,000277.513.49%
30,00,0007,50,00022,50,00089114.49%
50,00,00012,50,00037,50,000159015.49%

Paid by You: Considering 4X margins in cash.

The interest you pay is determined by the slab you fall into. These are flat rates, not incremental. This means that as soon as your funding value crosses ₹5 Lakh, the interest rate for your entire funded amount will be updated to 13.49%, rather than applying the new rate only to the amount exceeding ₹5 Lakh.

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Pay Less with MTF

Let's assume you have ₹10,000 in your trading account and want to buy a stock priced at ₹1,000 per share.

If the stock qualifies for a 4X margin, you can buy up to 40 shares using margin funding.

  • Total value of 40 shares = ₹40,000
  • Your contribution (The margin you'll pay) = ₹10,000
  • Amount Dhan will pay = ₹30,000

Dhan will pay for 75% of the stock value, which in this case is ₹30,000, at an interest rate of 0.0342% per day.

So, if you're holding the stock position for 10 days and then sell it, the interest rate calculations would look like this:

  • Daily Interest: Amount Paid by Dhan x 0.0342% = ₹30,000 x 0.0342% = ₹10.26
  • Total Interest for 10 Days: ₹10.26 x 10 = ₹102.6

After 10 days, you would pay ₹102.6 in interest for holding these 40 shares using MTF on Dhan.

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Without MTFWith MTF
Qty1040
Buy Price1,0001,000
Buy Price
(with MTF)
NIL250
Your Funds10,00010,000
Funded by DhanNIL30,000
Total Buy Value10,00040,000
Sell Price1,4001,400
Sell Value14,00056,000
Gross Profit4,00016,000
Holding Period (Days)1010
Interest RateNIL0.0342%
per day
Interest ChargesNIL102.60
Other Charges48.28192.86
Net Profit3,951.7215,704.72
Return On Investment39.52%157.05%
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MTF Calculator

Get Estimated Interest and Margin.

Things to Know Before Choosing MTF

What Can be Used as Collateral for Margin Funding?

Cash as well as non cash holdings can be used as collateral while placing trades via MTF. Available Funds for MTF would be your combined ledger plus pledged holdings.

Under What Circumstances will My MTF Holdings be Liquidated by RMS?

MTF holdings can be liquidated by our Risk Management Systems (RMS) under the following circumstances:
  1. When required margins are not being maintained.
  2. Holding Coverage has fallen below 20%.

Example below (referring to Question no. 1):

A client had Rs. 25,000, he bought a stock of worth Rs. 1,00,000 with 4X leverage provided by Dhan.
Now, if the value of stock falls to Rs. 93,000 client will be squared off as per below formula:
Combined Ledger : -75,000
Holding Full Value: 93,000
Holding Coverage = (-75,000 + 93,000) / 93,000 = 19%

List of Stocks with MTF

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Place MTF Order in
Just 3 Steps!


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1

Select a Stock

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2

In Pay Later, Tap on "Buy with Margin Funding"

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Your Order Will be Placed.

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View MTF Holdings
Seperately


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Select Portfolio

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Tap on "Stocks"

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Select "MTF" & View MTF Portfolio Separately


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How to Use Margin Trading Facility on Dhan?

Understand how to use MTF on Dhan with a step-by-step walkthrough of the feature and the order placement process. You'll also get a snapshot of MTF-related features like the Estimator.


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Frequently Asked Questions

Questions on your mind? Don't worry we have the answers!


Margin Trading Facility (MTF) allows equity traders to take up leveraged positions. What this means is simple - the trader will pay a fraction of the position value while the broker funds the remaining amount. At Dhan, we give up to 4X leverages on 1000+ stocks. Example below:

If a client has Rs. 25,000, he can buy a stock of worth Rs. 1,00,000 with 4X leverage provided by Dhan.

Margin trading can be useful for swing traders and BTST traders who aim to capture short-term price swings. On Dhan, you can trade with 4x leverage using margin funding. All you have to do is open a margin trading account!

MTF allows you to do more with less. That's why it's the go-to feature for swing traders and BTST traders. For example, you could get 4x leverage on Dhan on 1000+ scrips.

An interest of 0.0438% will be charged per day effective from the settlement date on the funded amount. Let's take an example where you bought shares on Monday for Rs. 40,000 (with 75% MTF funding) and sold them on the next Monday. The Buy settlement will happen on Tuesday, so that is when the interest period start, while Sell settlement happens on next Tuesday, but that is not counted for interest since the money is received that day. Here is an example:

Your fund = 10,000
Dhan funded value = 30,000
Total number of days = 7 (Tuesday to Monday)
Interest amount = Rs 91.98 (30,000 * 0.0438% * 7 days)

This means interest is charged starting T+1 settlement from Buy till a day prior to actual funds being received (Monday in this case but it may change in case there is holiday between Sell date and actual fund realisation date).
Trading with MTF on Dhan is simple and convenient. The order flow for placing a trade with MTF is the same as trading or investing. Simply select MTF as order type and place the order. Once it goes through, you'll be able to view all your MTF holdings in one single screen!

Stocks bought using Margin Funding can be held for an unlimited number of days, provided you maintain the necessary margins on a daily basis. Holdings will be liquidated if holding Coverage falls below 20%.

Here is a list of shares that can be bought using Margin Funding.

To exit, simply select MTF as order type while selling.

Yes. You can do BTST trades using MTF. However, the interest will be applicable for one day.

Note : The interest amount may change in case there is holiday between Sell date and actual fund realisation date.

Only securities included in Group 1 stock of the exchange categorisation are available for margin funding. Our RMS further excludes certain securities if they do not meet predefined liquidity requirements.
An order placed by you may not be booked as an MTF order due the following reasons:

1. When required margins are not being maintained.
2. Holding Coverage has fallen below 20%.

In such cases your MTF order is converted to delivery by default. In case of insufficient funds, securities bought are sold by RMS on T+5 working days.

Low in Funds to Trade?

Use MTF Starting at 12.49% p.a.

Open your Dhan Account in minutes!

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*All securities mentioned on this website are exemplary and not recommendatory.

We are bullish on India, we are bullish on India's prospects to be one of the largest economies in the world. We believe that the stock market provides a unique opportunity for all of India's traders and investors to participate in the growth story of the country.

Yet, most investing & trading platforms in India have remained more or less the same over the past decade. Times have changed and retail traders and investors have become smarter about managing their trades and money. Modern traders & investors require an online trading platform that helps them keep up with the technological advancements of our time.

That's why we're building Dhan - to help you trade, to help you invest, and to help you participate in India's growth stock via the stock market with awesome features and an incredible experience.

©2021-2025 Moneylicious Securities Private Limited. All rights reserved. CIN: U74999MH2012PTC433549 Moneylicious Securities is part of Raise Financial Services.

SEBI Stock Broker Registration No: INZ000006031 | Depository Participant (CDSL) ID: IN-DP-289-2016
Exchange Membership No. : NSE: 90133 | BSE: 6593 | MCX: 56320
Registered Office: 302, The Western Edge I, Off Western Express Highway, Borivali East, Mumbai - 400066, Maharashtra, India.
Corporate Office: 302, The Western Edge I, Off Western Express Highway, Borivali East, Mumbai - 400066, Maharashtra, India. Customer Care: 9987761000.


For any query / feedback / clarifications, email at help@dhan.co.

In case of grievances for any of the services rendered by Moneylicious Securities Private Limited, please write to grievance@dhan.co (for NSE, BSE and MCX) or grievancedp@dhan.co (for Depository Participant). Please ensure that you carefully read the Risk Disclosure Document as prescribed by SEBI, our Terms of Use and Privacy Policy. Compliance Officer: Mr. Manish Garg and Mobile: 8655740961 Email: complianceofficer@dhan.co To lodge your complaints using SEBI SCORES, click here.


Disclaimer: All communications with the client in the chat section are for support purposes only, and any commitments or statements made by the agent (human or virtual) shall not be binding on the company.


DHAN is a brand owned by Moneylicious Securities Private Limited. All DHAN clients are registered under Moneylicious Securities Private Limited. Clients are advised to refer to our company as Moneylicious Securities Private Limited when communicating with regulatory authorities.


Procedure to file a complaint on SEBI SCORES: Register on SCORES portal. Mandatory details for filing complaints on SCORES: Name, PAN, Address, Mobile Number, E-mail ID. Benefits: Effective Communication, Speedy redressal of the grievances


Disclaimer: Investment in the securities market are subject to market risks, read all the related documents carefully before investing. Brokerage will not exceed the SEBI prescribed limit


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.
  3. Check your securities / MF / bonds in the consolidated account statement issued by NSDL/CDSL every month.

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.


Moneylicious Securities Private Limited also known as Dhan is only an order collection platform that collects orders on behalf of clients and places them on BSE StarMF for execution. Client expressly agrees that Dhan is not liable or responsible and does not represent or warrant any damages regarding non- execution of orders or any incorrect execution of orders with regard to the funds chosen by the client or due to, but not being limited to, any link/system failure, delay in transfer of the funds on account of any unforeseen circumstances/issues in the banking system/payment aggregators or any other problems that may result in a delay in crediting the funds into the BSE Star MF's bank account.


Mutual fund investments are subject to market risks, read all scheme related documents carefully before investing. Dhan is not a distributor or agent of any mutual fund. Mutual Funds are not exchange-traded products. Any related disputes will not have access to the Exchange-investor redressal forum or arbitration mechanism. For other disclaimers please refer https://dhan.co/advertisement-disclaimer/


Download client registration documents (Rights & Obligations, Risk Disclosure Document, Do's & Don'ts) in vernacular language: BSE | NSE | MCX


Kindly, read the Advisory Guidelines of BSE | NSE | MCX for investors as prescribed by the exchange with reference to their circular dated 27th August, 2021 regarding investor awareness and safeguarding client's assets


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