The margin trading facility (MTF) is a mechanism that lets you buy stocks by paying only a part of the total value—essentially allowing you to borrow money from your broker to trade more than what your current funds allow.
How MTF Works:
Deposit a margin amount (say 25%)
Broker finances the remaining amount
You hold the stock, but pay interest until it’s sold or squared off
MTF is suitable for:
Short-term traders who can spot trends quickly
Experienced investors who understand leverage
Those who can manage interest costs and margin calls
It’s essential to use tools like an MTF calculator to plan trades efficiently and avoid overleveraging. MTF can be a smart strategy, but only when used with discipline and sound risk management.