Benefits of Margin Trading funding
FLATTRADE offers this MTF facility to the investors to buy in the way of funding, that is, if you don’t have the required funds to trade in a particular stock, you can opt for a margin trading facility.
Margin trading facility helps you to trade in stocks by borrowing money from your stockbroker.
You have to provide an initial margin either in the form of cash collateral or in the stock collateral to start the trading in the MTF account. The initial margin required to pay for buying the funding stock will vary from stock to stock. We will fund the rest of the transaction so that you are able to purchase this share. Thus you get the leverage to buy a certain stock even if you don’t have the funds in your trading account.
Under the Margin Trading Facility (MTF) segment, the client can purchase the shares and hold them for a period beyond 7 days by meeting the required margin and up to one year (365 days)