MTF enables the investor to purchase shares and securities with the benefit of margin. The investor can either use the cash as margin or pledge the approved shares and securities. After the purchase order is executed, the investor gets the shares and securities post repayment of the availed margin.
Flattrade provides MTF facility for our traders and investors, and it can be availed by either holding cash margin or by pledging the approved shares. Cash margin is where you can bring in 50% of the funds needed to buy stocks. The rest 50% that is required to buy the stocks will be funded by FLATTRADE. Using this leverage, you can buy your desired stock at the right price and profit from the market. MTF is available only for certain stocks traded in NSE stock exchange under Cash segment. You can get the list of approved shares and securities from our website from here. An interest rate of 11.99% per annum is charged on the funded value after adjusting the cash margin if any. to avail MTF all you have to do is just send a mail to [email protected], requesting FLATTRDE to transfer the required amount of 50% of the total fund required to buy the stocks from your normal account to the MTF account. However, if there is any shortfall in the cash margin, FLATTRADE reserves the right to transfer the required amount to MTF account to meet the shortfall.
Whenever there is a shortfall, you are given 5 working days from the date of margin call to make good for the margin shortfall or mark to market losses. If you fail to pay the shortfall, your positions will be squared off according to the prevailing market price. Also, read our MTF terms and conditions before trading with MTF.
Generally, to perform trade, the investor requires fund in his or her account. Sometimes, the fund in the wallet may not be sufficient to purchase the desired stock. In this situation, the investor can enable the Margin Trading Facility where the investor can borrow a specific amount from the broker to buy the stocks.
The investor has to put in a certain percentage of the total share price as the margin and the remaining is paid by the broker. This margin amount varies with stocks and securities. Thus, as a broker, Flattrade leverages your fund, enabling you to purchase the shares.
Unlike the Normal trading facility (NRML), MTF allows the investor to hold the shares and securities for a period beyond 7 days. NRML usually allows the investor to hold the shares and securities for T+5+2 days.
The maintenance of margin in your account varies with the stocks. The below table explains the initial margin and the maintenance margin.
|Category of Stock||Initial margin & maintenance margin as prescribed by SEBI||Initial margin and maintenance margin as set-in trading platform|
|Group I stock available for trading in F&O Segment||VaR + 3 times applicable ELM||VaR + 4 times applicable ELM with minimum margin of 40%|
|Group I stock other than F&O stocks||VaR + 5 times ELM||VAR + 6 times ELM with minimum margin of 40%|
MTF is available only under Cash segments for certain stocks traded only in NSE stock exchange.
If you have an existing Flattrade trading account, you can enable MTF by mailing a separate request to [email protected] If you are new to Flattrade, you may require opening a new trading account with us and then activate MTF linked to that account. To activate or avail MTF, send a request mail for the same from your registered mail ID to [email protected]
You will get a detailed email with all the information regarding your MTF transaction to your registered mail ID.
Yes, the corporate benefits will be credited to your account that is linked to the trading account.
Just like adding funds to your cash segment, you can add funds to your MTF segment. After enabling MTF on your account, login to your Flattrade app. Now, go to the MTF segment and add cash.
No, you cannot shift or transfer the funds between segments online. You can transfer the fund by mailing us at [email protected] and out executives will add the fund from equity to MTF upon receiving the mail request.
In MTF, trading is allowed only against the available margin. To execute a purchase, you need cash or margin credit balance before entering into the trade. In case you do not have cash margin, you can pledge the approved shares and securities to gain a credit balance.