Key Benefits of Using Margin Trading Facility (MTF)

Key Benefits of Using Margin Trading Facility (MTF)

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The margin trading facility (MTF) can amplify your returns — but only if you use it smartly. Here’s why investors and traders are increasingly using mtf stocks.

1. Leverage with Less Capital

You pay only a portion of the stock’s value (margin), and the broker funds the rest. For instance, with a 50% margin requirement, ₹50,000 lets you buy ₹1,00,000 worth of stocks.

2. Hold Stocks Longer

Unlike intraday trades, MTF allows you to hold leveraged positions for an extended period — weeks or even months.

3. Increased Returns Potential

When stocks rise, your ROI on invested capital is higher because of leverage.

4. Better Portfolio Diversification

With capital freed up, you can invest in multiple MTF stocks rather than locking large sums in one stock.

5. Transparent Margin Calculations

Modern brokers offer integrated MTF calculators, making margin computation hassle-free and transparent.

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