More trading power for everyone
Swing Traders
can leverage trading for optimal gains during short-term market swings.
BTST Traders
can utilise 4X margins for Buy Today Sell Tomorrow trades.
Long-Term Investors
can hold stocks for longer periods with minimal margin.
ArihantPlus Users
can enjoy exclusive access to MTF to boost their market potential.
Maximise your trades not your Capital with MTF
You have
₹10,000
You leverage
₹30,000
Your buying power
₹40,000
Limits and charges
- Get MTF on 1000+stocks.
- Buy stocks worth ₹40,000 by paying ₹10,000 (You can borrow up to ₹30,000)
- Low interest of 0.049% per day
E.g. Interest on ₹40,000 = ₹20/day
One-time pledging and un-pledging charges of ₹49+ GST & ₹10+ GST per stock respectively. To know more click here.
Keep in Mind
- MTF lets you borrow funds to buy stocks for a limited period of 90 days only.
- Gains or losses on stocks bought via MTF could be four times than a normal order. (Due to leverage position)
- As per regulatory guidelines, it is mandatory to pledge MTF Positions on the CDSL or NSDL website by 9 PM on the same day.
Place your order in just
5 steps
Select ‘MTF’ on the Order Screen
Tap on ‘Buy with MTF’
Head to the ‘Positions’ Screen
Authorise the MTF Order before 9 PM on the same day
View your MTF Portfolio separately
Stay a step ahead with MTF on ArihantPlus
1000+ scripts
Low-cost borrowing
Easy activation
Same order flow
Sell instantly
Easy pledge process
Separate MTF ledger
No hidden charges
MTF to delivery
MTF 101
Learn how to use Margin Trading Facility on ArihantPlus with a step-by-step walkthrough.
Margin Trading Facility. How to invest & Trade with MTF ?
Watch on
YouTube
MTF Dos and Don'ts
Dos
Remember to pledge the shares bought under MTF by 9:00 PM on the day of purchase.
Trade smartly – use MTF only after checking if it suits your trading strategy and plan.
Don’ts
Don't ignore any margin shortfall. In case of a margin shortfall, the shares will be squared off after 4 trading days.
Don’t forget that MTF is a loan; you’ll pay 0.049% interest per day (18% annually) on what you borrow.
The Margin Trading Facility enables you to borrow money from Arihant and leverage your holdings to buy stocks or take derivatives positions. This gives you access to additional buying power based on the value of securities in your demat account. Normally investors buy and sell stocks with their own money. In Margin Trading Facility (MTF), Arihant allows you to buy stocks just by paying a margin amount, and not the total value of the stock, by giving your securities as collateral.
MTF offers you flexibility - if you see an opportunity in the market and want to invest more, you may be able to invest right away without needing to make a transfer from your bank.
MTF collateral is the stock, ETF or mutual fund holdings used as collateral to get funding from your broker. An MTF collateral amount is a form of loan against shares offered by a broker to their clients for trading in stocks.
The equity collateral margin is the amount obtained from pledged stocks, ETFs, and mutual funds, after accounting for the haircut deduction. In simple words, when you place your securities as collateral, your broker will deduct a haircut on the value of each security and give you the rest of the amount as loan, which you can use to trade in stocks or F&O.
To activate MTF with Arihant, sign an online agreement during the KYC process. Once approved, the facility will be activated, and you can start using it from the next trading day. You can also apply for margin trading facility after you have opened your account via ReKYC process, and you will be given access. You can email us at contactus@arihantcapital.com to request for activation of the service.
Interest is charged at the rate of 0.05% per day, on the outstanding debit balance, on all MTF positions. Interest is calculated daily at the end of the day based on settled margin balances.
Normally, you can hold your shares for as long as you want, until you maintain the required margin and pay the interest. However, the MTF can be held for a maximum of 90 days after which either your stocks will be liquidated or you must settle the loan, and your securities will move into normal holding.
“No”, MTF can be done only in Equity segment for selective/approved stocks.
MTF needs to be pledged before 7 pm on the day after buying MTF shares, or it will be converted to a delivery order and the full amount will be deducted from your ledger. Additionally, interest will be charged on the money that was borrowed while buying MTF originally. You will need to settle the dues immediately to avoid liquidation of your holdings.
A nominal rate of ₹49+ GST is charged for pledging and ₹20+ GST for unpledging of securities.
Credit ledger balance (i.e., cash) and stocks and mutual funds approved by the exchange can be used as collateral for availing margin funding. Here is the list of approved stocks: https://mtf.arihantcapital.com/
MTF is very safe as only SEBI-registered brokers are obliged to provide extra cash for your trade on approved securities. Moreover, the stocks bought through MTF are also held in your demat account and you will also receive all corporate action benefits like dividends and bonuses!