Kotak Securities’ Margin Masterstroke: ₹20 Cr Limit at Just 9.69% Interest

Margin trading is a common strategy used by traders and investors to increase their buying power. By using a Margin Trading Facility (MTF), participants in the market can take larger positions by funding part of the trade through borrowed capital. Kotak Securities, through its Trade Free Pro plan, offers an MTF product that combines high funding capacity with a clear interest structure, designed for those who want to actively manage their capital.

A notable feature of Kotak Securities’ MTF is the funding limit of up to ₹20 crore, combined with an interest rate of 9.69% per annum under the Trade Free Pro plan. For investors who regularly use leverage or hold funded positions, this structure provides a way to manage costs while maintaining exposure to equity positions.

Understanding Kotak Securities’ Margin Trading Facility (MTF)

The Margin Trading Facility allows clients to buy approved shares by paying a portion of the total value, while Kotak Securities funds the rest. This enables clients to hold positions beyond their immediate cash availability, using margin to amplify their investment potential.

With Kotak Neo, once MTF is activated, clients can execute margin trades directly from their trading platform. The funded shares are held in a designated demat account with clear tagging to separate them from fully funded holdings.

Key Features of Kotak Securities’ MTF under Trade Free Pro

✅ ₹20 Crore Margin Limit

Eligible clients can access up to ₹20 crore in margin funding. This can be helpful for traders or investors managing larger portfolios or executing high-value trades. The facility is available based on account profile, collateral value, and risk criteria set by Kotak Securities.

✅ 9.69% Interest Rate

The interest rate for margin funding is 9.69% per annum under the Trade Free Pro plan. This is calculated on a daily basis and applied only to the funded amount. By keeping the rate transparent and fixed within this plan, Kotak Securities enables clients to assess their carrying cost with clarity before entering a trade.

✅ Wide List of Approved Stocks

Kotak Securities’ MTF covers a broad list of approved securities, including stocks from various sectors and market capitalisations. Clients can view the eligible list through their trading account or by checking Kotak Securities’ published list.

How It Works: A Simple Example

Suppose an investor wants to buy shares worth ₹1 crore but only wants to use ₹50 lakhs of their own funds. By using MTF, they can fund the remaining ₹50 lakhs through Kotak Securities. The interest on the funded portion (₹50 lakhs) will be charged at 9.69% p.a., pro-rated daily.

If the position is held for 30 days, the interest would be:

• ₹50,00,000 × 9.69% ÷ 365 × 30 = approx. ₹39,795

This cost allows the investor to maintain exposure without liquidating other holdings or deploying additional capital.

Risk Management and Alerts

Margin trading involves risk, especially in volatile markets. To help clients manage this, Kotak Securities provides:

• Real-time monitoring tools within the trading platform

• Automated alerts for margin shortfalls

• Daily mark-to-market calculations to keep clients informed about changes in funding requirements

Clients are advised to regularly monitor their funded positions and maintain sufficient margins to avoid liquidation.

Who May Benefit from Kotak Securities’ MTF

This facility is suited for:

• Traders who prefer to hold larger positions without tying up all available capital.

• Investors looking to increase exposure for short- to medium-term opportunities.

• Individuals or entities managing diversified portfolios who want flexibility in capital allocation.

Read More: Advantages and benefits of Margin Trading Facility

Summary

Kotak Securities’ Margin Trading Facility, under the Trade Free Pro plan, offers funding up to ₹20 crore with a structured interest rate of 9.69% per annum. Combined with a wide stock universe, integrated tools, and transparent cost structure, the MTF provides a flexible option for those seeking to expand their trading or investing capacity.

For those who regularly engage in margin-based strategies, this offering can support efficient capital deployment and disciplined position management.

To learn more or activate MTF, clients can visit Kotak Securities' website or contact their service relationship team.

Also Read:

Is MTF Only for Experts? A Beginner’s Guide for First-Time Traders