At FYERS, weâre always looking for ways to support our traders, and we understand that one of the biggest hurdles is capital limitations when trying to seize market opportunities. Thatâs why weâre excited to introduce Margin Trading Facility (MTF) on our platform! With MTF, you can boost your buying power, diversify your portfolio with limited funds, and make the most of timely opportunities without having to arrange for additional funds. Itâs all about giving you the flexibility and freedom to trade on your termsâbecause when opportunity knocks, you should be ready to act.
What is MTF?
Margin Trading Facility (MTF) allows you to borrow funds to increase your buying power and take larger positions in the market. Letâs understand with an example:
We've all been there as tradersâwhen a stock is on the verge of a breakout, driven by a news event or an indicator, and you're limited by your available funds. You might have âš1 lakh in your account, but you know this is the moment to go bigger. Thatâs where MTF steps in. It lets you leverage up to 4x your capital, allowing you to buy âš4 lakh worth of shares instead of just âš1 lakh. Plus, with only a small interest on the borrowed amount, itâs a simple and affordable way to act when the market presents big opportunities.
How Does MTF Work?
Pick your stock: Choose the stocks you want to buy.
Select MTF: While placing your order, choose MTF to get extra funds.
Trade with more buying power: Use the additional margin to buy stocks worth more than your available funds can.
Pay interest only on what you borrow: You only pay a small interest on the borrowed amount, making it easy to trade with more funds.
Why Use MTF?
Trade bigger with up to 4x leverage on 900+ stocks
Imagine trading four times your available funds on a wide selection of stocksâover 900 to be exact. With MTF, thatâs not just possible, itâs simple. Take bigger positions and tap into more opportunities, all without needing extra cash upfront.No time limits on your trades
Unlike many brokers that cut your MTF positions after a few weeks or months, we let you hold your positions for as long as you want. Whether youâre playing the long game or riding short-term waves, you decide when to exitâno deadlines, no pressure.Trade the size that fits your risk appetite
With MTF, you're in more control of your position sizing. Want to play it safe with a smaller trade? Go for it. Ready to go higher? That's your call too. Unlike futures, where a 20% margin locks you into 4x-5x leverage, MTF allows you to adjust according to your risk appetite. Youâre not boxed into any rigid rulesâtrade freely based on how you see the market.Reduced margin requirements
Forget about fixed lot sizes. Most futures trades will set you back at least âš1.2 lakh, and youâll need multiples of that for every additional lot. But with MTF, youâre not tied to such big numbers. You can take positions in your favorite stocks with as little as âš10,000 or lower, giving you the freedom to trade exactly how you wantâwithout the heavy upfront commitment.Low-cost leverage when you need it
Leverage shouldnât be expensive, and with MTF, it isnât. While the annual interest rate is 18% due to short-term borrowing needs, the daily interest rate is just 0.049%. This means that for every âš1 lakh you borrow, youâre only paying âš49.3 a day. Itâs an affordable way to add extra firepower to your trades without breaking the bank.
How to Get Started with MTF:
Log in to your FYERS account: Visit the FYERS website or use the mobile app to log in.
Select the stock: Go to the âMargin Trading Facility (MTF)â option in the order window & click on âTry MTF".
Complete the registration: Follow the prompts to complete the MTF registration process. You may need to accept the terms and conditions. Â
Activate MTF with OTP: Once registered, activate MTF on your account.
Start trading with MTF: Begin trading and select the MTF option while placing your orders to use the facility.
Please note that enabling DDPI feature is mandatory to access our MTF facility. If you haven't enabled DDPI yet, check out our support article.
Got questions? Weâve got answers
We understand that you might have a few questions around MTF. No problem! Visit our FAQ Section to find quick and helpful answers.
Final Thoughts
MTF is more than just a feature; itâs an invitation to trade differently. With easy activation and access to additional funds, you can finally act on those opportunities without hesitation. Take a moment to explore what MTF can do for you. Activate the facility today and step into a world of trading possibilities. Your next move could be your best one!