MTF Calculator

Frequently Asked Questions

• Q. What is MTF?

  A. Margin Trading Funding (MTF) lets you buy stocks by paying only a part of the amount while RMoney funds the rest. You can provide margin in cash or pledge shares as collateral.

• Q. How is interest calculated?

  A. Interest is charged daily on the borrowed amount from the exchange pay-in date until repayment, including weekends and holidays.

  Example: Stock Purchase: ₹1,00,000, Your Contribution: ₹25,000 ,Funded by RMoney: ₹75,000, Daily Interest: ₹36.98 (approx.), Is interest charged on weekends and holidays?
  Yes, interest applies every day until you sell the shares.

• Q. What is the “Required Margin” in MTF?

  A. The minimum amount you must maintain in your account to keep your MTF trade active. If RMoney funds 75%, you must maintain the remaining 25%.

• Q. Why use MTF?

  A. (i)Higher Buying Power – Trade with leverage. (ii) Pledging Benefits – Use your holdings as collateral. (iii) Lower Cash Requirement – Invest with less upfront money.

• Q. Why do some stocks have 1x leverage?

  A. With 1x stocks, you can pledge holdings for margin without adding extra cash.

• Q. Can I use MTF for intraday trading?

  A. No, MTF is for delivery-based trading only.

• Q. What if I don’t maintain the required margin?

  A. RMoney may sell your holdings to restore the minimum margin.

• Q. Do I need a separate Demat account for MTF?

  A. No, your existing Demat account works for MTF.

• Q. What happens if pledged shares increase in value?

  A. Your margin increases, allowing you to take new positions.

• Q. Who can use MTF?

  A. All RMoney clients except NRIs, minors, and custodial accounts.

• Q. Key things to consider in MTF:

  A. Interest Cost – Charged daily on borrowed funds. (ii) Market Risk – Gains and losses are magnified. (iii) Regulations – Follow SEBI and RMoney’s guidelines. (iv) How are taxes and P&L reports handled? (v) MTF trades follow FIFO rules and are treated like regular delivery trades for tax purposes.

• Q. Why do I need DDPI/POA for MTF?

  A. POA/DDPI is required for MTF due to operational needs.

• Q. Can I buy stocks on a settlement holiday?

  A. Yes, but T1 holdings (BTST) cannot be sold on settlement holidays.

• Q. What happens during corporate actions?

  A. MTF positions are squared off before the ex-date, except for bonuses, stock splits, dividends, and rights issues.

• Q. Can I convert MTF positions to CNC or vice versa?

  A. No, MTF positions cannot be converted to CNC or intraday trades.