MTF Stock List and MTF Charges Calculator: A Quick Guide
MTF Stock List and MTF Charges Calculator: A Quick Guide
Blog Article
Margin Trading Facility (MTF) is a popular tool among traders who want to amplify their buying power. However, not all stocks are eligible for margin trading. That’s where the MTF stock list and MTF charges calculator come into play.
What is an MTF Stock List?
The mtf stocks includes stocks that are approved by the broker and the exchange for margin trading. These are usually large-cap or high-volume stocks that offer liquidity and stability. The list is curated based on SEBI guidelines and broker-specific risk management policies.
Key Features:
Includes NSE/BSE-listed stocks.
Often contains blue-chip and high-volume stocks.
Regularly updated by brokers based on volatility and market conditions.
| Stock Type | Margin Available | Example Stocks |
|---|---|---|
| Large Cap | Up to 75% | Reliance, HDFC Bank |
| Mid Cap | 40%-60% | L&T Finance, PVR |
| Low Liquidity | Not Eligible | Penny or volatile stocks |
What is an MTF Charges Calculator?
An mtf charges calculator helps traders estimate the cost of borrowing funds through the Margin Trading Facility. It calculates the interest charges, brokerage, and holding period costs, allowing investors to plan their trades wisely.
How It Works:
You typically input:
Trade amount
Margin used
Interest rate
Holding period (days)
The calculator then displays:
Interest payable
Total cost of the trade
Break-even price
Example:
| Particulars | Value |
|---|---|
| Trade Value | ₹1,00,000 |
| Margin Paid | ₹25,000 (25%) |
| Broker Funds | ₹75,000 |
| Interest Rate | 18% p.a. |
| Holding Period | 10 days |
| Interest Payable | ₹370 (approx.) |
Conclusion
The MTF stock list helps you know what stocks are eligible for leveraged buying, while the MTF charges calculator ensures you are aware of the costs involved. Together, they allow you to trade smarter and manage your risk effectively.
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