Margin Trading Facility (MTF)

Low on Funds? No Problem

Buy Now. Pay Later. Enhance your buying power with our Margin Trading Facility.

4x*Leverage available on MTF
9.75% p.a. with Trade Free Pro
Get ZERO Brokerage on ALL Intraday Trades
+91 -

personImage
Never miss an investment opportunity!
4x Buying Power
Get up to 4 times the leverage on 1000+ stocks.
Trade Now and Pay Later
Low on funds? We'll cover the remaining amount for you.
No Time Limit
Say goodbye to time restrictions. Hold your positions as long as you wish to.
Cashless Trading
Use your shares and ETFs as collateral instead of cash to create positions.
Lower Interest Rate
Interest rate as low as ₹14 on ₹50,000 on funded amount.
Backed By Our Experts
Access MTF monthly picks backed by research team.
How does Margin Trading Facility works?

Margin Trading Facility (MTF) provides you with additional leverage for trading, allowing you to buy up to 4x more shares than your available funds. By placing a small margin in cash or stocks as collateral in your Demat account, Kotak Securities funds the rest. With Pay Later (MTF), you only pay a fraction of the total trade value upfront, and Kotak Securities will cover the remaining. This facility helps you maximize your buying power and can also be used when you're short on funds. Simply put, buy shares now and pay later!

Let us understand this through an example.

Scenario:

  • You have ₹2,000 and want to buy 1000 shares priced at ₹100 each.
  • Total cost = ₹1,00,000 (₹100/share * 1000 shares).

Using Margin Trading Facility (MTF) with 4x Leverage:

  • You only pay ₹20,000.
  • Kotak Securities covers the remaining ₹80,000.

If the stock price rises to ₹110:

  • Value of 1000 shares = ₹110,000 (₹110/share * 1000 shares).
  • Profit = ₹10,000 (₹110,000 - ₹100,000) on your initial ₹20,000 investment, minus interest and brokerage costs.

If the stock price falls to ₹90:

  • Value of 1000 shares = ₹90,000 (₹90/share * 1000 shares).
  • Loss = ₹10,000 (₹100,000 - ₹90,000), plus interest on the borrowed amount.

You may also face margin shortfall requirements due to the drop in share value.

Calculate the interest & margin requirements for margin trading:

Quantity

LTP: 00
Total buy value ₹0.00 with ‘Pay Later (MTF)’

You pay : ₹0.00

Funding by Kotak Neo : ₹0.00

Watch and learn
Understanding Margin Trading Facility
In our comprehensive guide on Margin Trading Facility (MTF), we will take you through the world of MTF, exploring how Kotak Securities offers you a remarkable 4X margin on trading stocks.
TRANSPARENT AND AFFORDABLE PLAN
Unlock the full potential of financial growth
Align your financial goals and enjoy affordable access to our comprehensive trading features and tools.
Follow these 5 easy steps
image
Step 1: Access the Buy Page
Go to the buy order page of your preferred stock.
Enter quantity and Select “MTF” under the product type.
Once done, you will be able to place an order using MTF.
Cross-check the order details and proceed to buy.
Your order will be placed under MTF.

MTF can be accessed with any of our brokerage plans, giving you the ability to boost your buying power. However, the Trade Free Pro Plan offers a lower interest rate. The good news is, you can start using MTF without any additional documentation! Simply accept the disclaimer, and you're ready to go.

How to Activate MTF:

Online Steps:

  1. Visit the stock order page of your preferred stock, or
  2. Go to Account Details, navigate to Products, click on Pay Later (Margin Trading Facility), and then click Activate. Once activated, you can begin placing your orders using MTF!

Offline Steps: To activate MTF offline:

  1. Send an email to service.securities@kotak.com accepting the MTF terms and conditions. Be sure to mention your client code.
  2. To download the activation firm, visit kotaksecurities.com, then, go to Support, click on Forms Download, search for Margin Trading Facility, and download the form.
  3. You can also use this direct link to download the form: MTF Activation PDF.

Once you send the email, our team will activate MTF for your account and confirm the same over mail. You can then begin placing your orders using MTF!

The MTF Edge
Unlimited Holding Period
Hold your positions for as long as you want, with no time restrictions on your trades.
Cashless Trading
Use your existing shares and ETFs as collateral instead of cash to create new positions and expand your opportunities.
Lower Interest Rate
Get funding at a nominal interest rate, as low as 9.75% p.a. or 0.0267% per day, helping you save on costs. Check out our MTF rates under Trade Free Pro Plan.
Expert Support
Gain access to MTF monthly picks curated by our research team in the dedicated MTF section on our Neo platform for informed decision-making.
Enhanced Buying Power
Boost your buying power with up to 4x leverage on over 1000+ stocks, allowing you to trade larger volumes.
Trade Now, Pay Later
Running low on funds? Don’t worry, we’ll cover the remaining amount, so you can trade without financial barriers.
Wall of Trust
You deserve nothing but the finest for your investments

We believe in quality first and a technology-led approach that makes us a reputable choice for investment advisors across the industry.

25+ Years
Legacy
5 million +
Customers
Accredited
Research
155+
Branches
1000+
Franchises
310+
Cities
Note

*Margin available up to 4x on 1000+stocks

Frequently Asked Questions (FAQs) for Margin Trading Funds

Margin Trading Facility (MTF) is an exchange-approved product wherein individuals can purchase stocks by paying only the initial margin, with the remaining amount being funded by Kotak Securities Ltd. One can either keep the position open as long as they want or can take delivery of the stock.

Kotak Securities offers lower MTF rates of 9.75% per annum or 0.0267% per day, which are applied from T+1 day onwards on the Trade Free Pro Plan. These charges vary based on your selected brokerage plan.

With the introduction of the pledge model in September 2020, it has become mandatory to pledge stocks purchased under the Margin Trading Facility.To hold your MTF position for as long as you want, user are required to pledge the stocks purchased under MTF on T Day on the link received from NSDL.

Yes, there is a charge of Rs.20 + GST per ISIN for both pledging and unpledging.

In the event that you fail to pledge the stocks purchased under MTF, your position will be liquidated.

With Kotak Securities Ltd, once you have pledged your MTF stocks, you can maintain your position for as long as you wish, or you may choose to convert the position to cash.

To create an MTF position, you can utilise cash, existing stocks, and ETFs held in your Demat account as collateral, post-pledging.

Benefit: Leverage enables you to amplify returns on a smaller investment, as seen when paying only 20% upfront for a 10% return on the stock price, resulting in a 50% return, pre-cost.

Risk: However, it's crucial to note that leveraging also adds losses on a smaller investment. For example, paying only 20% upfront for a 10% loss on the stock price means you lose 50% of your capital, pre-cost. Understanding the risks associated with Leverage is vital for informed decision-making.

Benefit: Unlimited holding period allows you to hold a trade indefinitely if you believe it offers a better chance of making a profit.

Risk: Nevertheless, holding a trade for an extended period increases your interest costs, raising the breakeven for your trade. Additionally, if the trade moves against you, you may need to provide higher margins or face liquidation.

The creation of a MTF position against shares as collateral is now open to investors. SEBI and Exchanges keep a close eye on the securities that qualify for the MTF, and they periodically prescribe the margin that must be placed on such securities (either in cash or as shares of collateral).

A margin trading facility, such as MTF, can be powerful if you aim to maximize the potential of your business. This feature makes it possible to place more bets on the market than your account balance usually is able to allow, which can result in a higher profit margin by increasing purchasing power.

You may continue to own shares if you like and pay interest on the funding amount. MTF is only available to a couple of exchange-approved stocks, as opposed to Cash. In your app, this information is available on a stock detail page that relates to margin requirements.

The holding period on MTF with Kotak Securities is unlimited. This means that you can hold a stock for an unlimited number of days in MTF with Kotak Securities. Do note that interest charges will apply for the duration of the position, basis your pricing plan.

Get ZERO Brokerage on ALL Intraday Trades
+91 -

personImage

Successfully Submitted

Successfully Submitted

Get ZERO Brokerage on ALL Intraday Trades
+91 -