Question 1

What is Margin Trading Facility?

Accepted Answer

Margin Trading Facility (MTF), is a product where you get funding from m.Stock for buying stocks in
the share market. This facility is exclusively for delivery trades only. m.Stock offers up to 80%
funding on more than 1070+ stocks with interest as low as 6.99% annually. The Pay Later (MTF)
facility has no subscription fees or hidden charges and is absolutely free with your m.Stock Demat
account.

Question 2

What is an example of MTF in the share market?

Accepted Answer

Let’s assume that you want to buy stocks worth ₹100,000 but only have ₹25,000 in your account. To
fund the balance ₹75,000, you can avail m.Stock’s Pay Later (MTF) facility by pledging your stocks.
In exchange, we will charge interest on the funding value. In the above case, m.Stock will charge as
low as 0.0411% per day i.e., ₹ 937 for one month (varies as per your holding period).

Question 3

Is margin trading good for beginners?

Accepted Answer

Margin trading can be a good option for beginners as insufficient capital is one of the biggest pain
points for stock market beginners. With MTF, beginners can leverage their limited capital and trade
big. For instance, with m.Stock’s MTF , investors get up to 80% funding. So, beginners with a
capital of Rs. 10,000 can get funding of Rs. 40,000, helping them place trades worth Rs. 50,000.
Similarly, beginner investors can place trades worth Rs 2,50,000 against a capital of Rs 50,000. The
funding percentage varies depending upon the stock.

Question 4

In which segments can I use the Pay Later (MTF) facility?

Accepted Answer

The Pay Later (MTF) facility is only available in the Equity segment (cash market). You cannot use
the Pay Later (MTF) facility in the Futures & Options segment.

Question 5

Is Pay Later (MTF) available for delivery trades?

Accepted Answer

Yes, Pay Later (MTF) is exclusively available for delivery trades only. It is not available for
intraday trading. However, you can sell your shares on the same day.

Question 6

How much margin can I avail under Pay Later (MTF) facility?

Accepted Answer

Under Pay Later (MTF), you can get funding for up to 80% of the total trade value depending upon the
stock.

Question 7

How much interest is charged if I buy stocks under the Pay Later (MTF) facility?

Accepted Answer

The interest charged under the Pay Later (MTF) facility depends on the gross funding value and
holding period. m.Stock charges one of the lowest interest rates in the industry, which are as
follows:

Funding Value                Daily Interest Rate
Above ₹5 crore               0.0192%
Above ₹25 lakh to ₹5 crore   0.0274%
Up to ₹25 lakh               0.0411%

Question 8

How much is 20% margin?

Accepted Answer

Margin is the minimum amount you should maintain in your trading account to place a trade. It is
also the basis for your broker’s funding. Since m.Stock provides up to 80% funding, you simply need
to maintain 20% margin in your trading account and m.Stock will fund the balance trade value (80%).
For example, say you want to place a trade worth ₹20 lakhs. In this case you only need to put forth
a 20% margin of ₹4 lakhs and m.Stock will provide the balance ₹16 lakhs. The funding percentage is
dependent on the stock. Check the full list of 1070+ MTF stocks here.

Question 9

Can I buy and sell margin shares on the same day?

Accepted Answer

Yes, you can buy and sell shares bought under the margin trading facility on the same day. Intraday
trading is allowed under MTF with no interest on such trades.

Question 10

How is interest calculated under Pay Later (MTF)?

Accepted Answer

Let’s say you want to buy stocks worth ₹10 Lakhs. You already have ₹2.5 Lakhs in your account. For
the balance ₹7.5 Lakhs, you avail m.Stock’s Pay Later (MTF) facility. Since the funding value is
below ₹10 Lakhs, the interest charged is 0.0411% per day. Now suppose you hold this position for 30
days. In this case, your interest will be ₹9,240 for 30 days.

Question 11

What are the Margin Trading Facility (MTF) charges per day?

Accepted Answer

m.Stock charges a flat interest rate of 0.0411% per day on MTF where the gross funding value is Up
to ₹25 lakh & 0.0274% per day on funding value above ₹25 lakh to ₹5 crore. And for above ₹5 crore
the effective interest rate also reduces to just 0.0192% per day.

Question 12

When do I have to pay the interest charged on the MTF trade?

Accepted Answer

The interest charged on MTF is payable on a daily basis. It is directly debited to your ledger at
the end of each day till the time you hold the position.

Question 13

Is margin interest charged daily?

Accepted Answer

Yes, MTF interest is charged and debited to your ledger on a daily basis. With m.Stock’s MTF ledger
you can easily track and monitor your MTF funding and daily interest charges. To access the same:
Login >> Menu >> Reports >> MTF ledger

Question 14

Is MTF margin charged monthly?

Accepted Answer

No, interest on your MTF trades is charged and debited to your ledger on a daily basis, not every
month. To access the same, Login >> Menu >> Reports >> MTF ledger

Question 15

What is margin trading? Explain with an example.

Accepted Answer

But with MTF, you can take up this investment opportunity worth ₹13 lakhs with just ₹2.60 lakhs as
margin in your trading account (assuming 80% funding from the broker). Now in exchange for this
funding, the broker will charge you interest. MTF interest typically ranges from 0.0192% per day for
funding above ₹5 crore, 0.0411% per day for funding upto ₹25 lakh and 0.0274% per day for funding
above ₹25 lakh to ₹5 crore.

In the above example, since the funding value of ₹10.40 lakhs is less than ₹25 lakhs, the applicable
MTF interest rate will be 14.99% p.a. Assuming you hold the position for 1 year, the total interest
payable will be ₹1,55,896. Now say the stock price rallies by 25% in one year to ₹1,625. In this
case, your profit would be ₹3.25 lakhs (₹16,25,000 - ₹13,00,000) and your profit after interest will
be ₹1,64,104 (₹16,25,000-₹13,00,000 - ₹1,55,896). Your return on invested capital (₹2.60 lakhs) is a
whopping 87%! This is how margin trading works.

Question 16

What is special about m.Stock’s Pay Later (MTF) facility?

Accepted Answer

The primary reasons that make m.Stock’s Pay Later (MTF) facility superior to other MTFs are:

Lowest Interest Rate: m.Stock charges one of the lowest interest rates on MTF in the country. For
 funding value of above ₹5 Crore, we charge as low as 6.99% which is 0.0192% per day.
 Unlimited Holding Period: Under Pay Later (MTF), there is no restriction on how long you can keep
 your position open. You can hold your stocks for as long as you want.
 High Funding: m.Stock offers funding up to 80% of the total trade value.
 Vast Collection of Stocks: m.Stock offers margin trading facility for more than 1070+ stocks.
 Zero Subscription Charges: Our Pay Later (MTF) facility is absolutely free for m.Stock Demat
 account holders. There is no separate subscription fees or charges.
 No Hidden Charges: Our Pay Later (MTF) facility is absolutely free of cost to m.Stock Demat account
 holders. There are no hidden charges with MTF.
 Competitive Pledge and Un-Pledge Charges: Pledging is an essential part of the Pay Later (MTF)
 facility. While other brokers charge as high as ₹35 per scrip per trade, m.Stock charges ₹32 per
 scrip per trade.
 User-Friendly Interface: You can avail the Pay Later (MTF) facility in 3 simple clicks with our
 quick, seamless, and intuitive m.Stock app.
 Higher Buying Potential: With Pay Later (MTF), you can unlock higher buying potential as you get
 access to more than 900+ stocks and never have to lose out on market opportunities.

Question 17

What happens if I fail to maintain the required margin?

Accepted Answer

If you fail to maintain the required margin, then the shares purchased under MTF are automatically
squared-off. The balance amount is settled by the broker after deducting the interest charges.

Question 18

How do I buy stocks using Pay Later (MTF)?

Accepted Answer

Follow the below steps to buy stocks under the Pay Later (MTF) facility:

First select the stock that you wish to buy. m.Stock offers more than 1070+ stocks under the Pay
 Later (MTF) facility.
 Once you have decided on the stock, click on the “Buy” order screen.
 Select “MTF” as your product type.
 Enter quantity and rate (in case of a limit order).
 Post this, you will have to click on “Buy” to complete the transaction.

Question 19

How do I cancel the Margin Trading Facility order?

Accepted Answer

You can cancel the MTF order from the “Orders” section if it has not been executed. Simply open the
“Orders'' section, then go to “Pending” orders, and select the open MTF order you want to cancel.
Then simply click on “Cancel” and confirm. Carefully review the order details before confirming the
cancellation request.

Question 20

How can I sell the shares that are purchased on Pay Later (MTF)?

Accepted Answer

You can sell the shares purchased under Pay Later (MTF) any time from the m.Stock app or the
m.Stock’s web terminal and book your profits.

Question 21

What is the share pledging and un-pledging charges under MTF?

Accepted Answer

Pledge creation & closure charges will be ₹32 per PSN (Pledge Sequence Number) per day (+GST) for
MTF orders.

Question 22

What is the difference between Pledge Shares and MTF Pledge?

Accepted Answer

In Pledge Shares, you use your existing shares as collateral for getting extra margin. Whereas in
MTF Pledge, you mark the fresh shares that you want to buy as a collateral to your broker. So,
ideally Pledge Shares is funding done on collateral whereas MTF pledge is transactional funding.

Question 23

Which is the best mobile application for margin trading in India?

Accepted Answer

Mirae Asset’s m.Stock trading app is one of the best application for margin trading in India. It
offers up to 80% funding in more than 900+ stocks at one of the lowest interest rates of 6.99% p.a.
in the country. You also have the freedom to hold the stocks as long as you want, without any
restrictions. The Pay Later (MTF) facility is available freely with your m.Stock Demat account at no
additional subscription fees or hidden charges.

Question 24

How can I avail the Pay Later (MTF) facility?

Accepted Answer

The Pay Later (MTF) facility comes free with your m.Stock Demat account. To avail this facility,
simply click on the MTF tab on the order page.

Question 25

Is margin trading risky?

Accepted Answer

Stock market investments including margin trading facility are subject to market ups and downs and
hence carry some degree of risk. MTF being a leveraged product, allows you to trade in multiples of
your capital and hence even your profits and losses are multiplied. But a big chunk of the risk is
averted since intraday trading is not allowed under MTF. This means you can hold your position or
trade for as long as you wish, giving investors ample time to achieve their desired price targets.

Question 26

How does the unlimited holding period feature benefit me & what are the risks involved in margin trading facility?

Accepted Answer

With unlimited holding period, one can avoid extra transaction and brokerage charges on selling and
re-buying your positions. In cases of limited holding period, one may miss out on opportunities
after selling your positions once the holding period is over.

One must keep in mind that MTF attracts interest on the margin accrued and one can also run the
chance of incremental losses.

Question 27

How to activate your MTF account?

Accepted Answer

As an m.Stock customer, one will not need to activate MTF for your accounts. The MTF feature is
available for one to avail margin at any given point of time.

Question 28

What are the Dos & Don’t's while trading in margin trading facility?

Accepted Answer

Ensure to do your research before availing MTF.

Make sure to not ignore margin shortfall. In case of margin shortfall over 75%, m.Stock will square
off the positions.

Question 29

What are the advantages of Margin Trading Facility?

Accepted Answer

There are many advantages of availing the Margin Trading Facility with m.Stock.

One of the lowest interest rates starting from 6.99% p.a.
 Unlimited holding period
 Funding up to 80%
 Low pledge charges ₹32
 Low subscription charges - ₹0
 No Hidden Charges

Question 30

Who are the top low-interest MTF brokers in India 2026?

Accepted Answer

In 2026, the top brokers for Margin Trading Facility (MTF) like m.Stock are those that keep your
borrowing costs low, so you can hold positions longer. You should look for platforms that offer
competitive slab-based interest rates and clear and transparent charges, especially for larger
funding amounts.

A valuable feature to watch for is to have a high funding amount and an extended or unlimited
holding period. You can choose an app such as m.Stock that shows clear daily interest charges
(0.0192% per day) and makes them easy to track.

Hence, choosing a broker with lower funding costs and strong risk controls can help you trade
smarter and keep borrowing costs under control.

Question 31

Can MTF help with swing trading?

Accepted Answer

Yes, MTF is well-suited for swing trading. This is because you can create a delivery-based position
and hold it for a few days or weeks. There is no time limit for holding positions under MTF. You can
fund the position using either pledged stocks or fresh capital through brokers like m.Stock.

Some platforms like m.Stock also offer a MTF calculator, which allows you to check the exact
interest cost before entering the trade. Further, all positions remain fully transparent and are
tracked in real-time. There is no misuse of collateral, and the pledging process follows SEBI
guidelines. This gives retail users better control when managing medium-term positions. It also
helps reduce the burden of full capital commitment while still allowing you to hold and monitor your
trades.

Question 32

How to calculate MTF margin?

Accepted Answer

To calculate the margin required for an MTF (Margin Trading Facility) trade, you first need to know
the total trade value and the margin percentage set by your broker.

The total trade value is calculated by multiplying the number of shares you wish to purchase by the
price per share, while the margin percentage is usually displayed on your broker’s trading platform.

With these details in hand, use the following formula to determine the exact margin you need to pay:

Margin required = Total trade value × margin percentage

Alternatively, you can use an MTF calculator to estimate your margin and other parameters.

Question 33

Is MTF safe for retail investors in India?

Accepted Answer

MTF can be safe for retail investors in India if it is used thoughtfully. It is a SEBI regulated
facility, so the process itself is structured and transparent. The shares you pledge remain in your
demat account, and interest is charged only for the time you actually use the borrowed amount.
However, it is important to work with a trusted and SEBI-registered broker like m.Stock to trade in
a secure and regulated environment.

Question 34

What are the eligibility criteria for MTF?

Accepted Answer

The eligibility criteria for MTF depend on your chosen broker or brokerage platform. For instance,
to use m.Stock’s MTF, you must have an active demat and trading account with m.Stock.

Moreover, MTF is available only for eligible stocks, and you must maintain the required margin based
on each trade. You can provide this margin in cash or by pledging shares. Most brokers require no
minimum income or credit score.

Furthermore, interest is charged based on your outstanding balance and the selected rate slab. Note
that you cannot carry out intraday or F&O trades using MTF, as it is intended for delivery-only
trades.

Differences	Pay Later (MTF)	Pledge Shares
Purpose	Allows leveraging on available fund	Allows using existing holdings as collateral
Collateral required	None	Existing shares in the Demat account
Interest charges	Charged on the overall funding	Charged on the margin utilised
Risk of charges	Based on purchased stock performance	Higher in volatile market conditions

Pay Later (MTF)

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