What are the charges for buying/selling using MTF on m.Stock?

Intraday trading and margin trading facility (MTF) are two separate product types, each with its own structure and benefits depending on your trading style. Intraday trades are meant to be opened and closed on the same day. 

On the other hand, MTF allows you to borrow funds from a broker to hold shares for as long as you need it. There is no restriction on tenure. 

Pay Later MTF trades can be funded through pledged stocks or your own capital through brokers like m.Stock. Intraday does not involve any interest or pledge margin and relies fully on existing account funds. Whereas you need to pay interest on MTF as which varies from broker to broker.

Generally, the shares you borrow under MTF are placed under the Positions tab. Once you exit these positions or sell them, the borrowed funds are automatically squared off. Once done, the amount is credited or debited to your account as per profit or loss. It means, you don’t have to follow a manual process to clear your MTF dues. 

Pledging is one of the two ways to use MTF. You can pledge shares from your portfolio to receive instant margin credit. If you do not want to pledge, you can also add fresh capital to meet the margin requirement. Once pledged, your shares remain visible and under your control. The margin is applied instantly and can be used for delivery trades. 

Moreover, you can unpledge your shares anytime using your broker’s app or platform. There is no paperwork, no delay in release, and all pledges comply with SEBI rules. 

Several SEBI-registered brokers offer Margin Trading Facility in India, including m.Stock by Mirae Asset. m.Stock offers Pay Later MTF with interest rates starting at 6.99% p.a., based on your pledge value and funding usage. MTF at m.Stock can only be used for delivery-based trades in approved stocks.  

Other brokers also offer MTF, but each one differs in margin benefit, interest structure and stock eligibility. You should compare funding rates, minimum holding requirements and pledge processes, and associated risks and terms before selecting a provider and consider your own risk profile and investment objectives.

You can avail up to 80% of the position you wish to invest in. However, the amount is different for different stocks.

m.Stock offers its MTF service with one of the lowest brokerage charges.

Yes. You can use Pay Later (MTF) with Margin pledge to take positions in delivery. The interest charged on the funded amount through Pay Later (MTF) would be 6.99%—14.99% p.a. as per the DPC slab. However, if the client has both cash and pledged shares, in case of a shortfall, the balance will be covered with the pledged amount and interest of 24% p.a. will be charged.