Understanding Your MTF Ledger
When you take trades under Pay Later (Margin Trading Facility), you’ll see transactions posted across two ledgers. While it can feel overwhelming at first, this breakdown will help you clearly understand how your funds move across Kotak Securities.
Let’s begin by understanding each ledger and how they interact.
The 2 Ledgers You’ll See in Your Reports
Pay Later (MTF) Ledger
You can view your MTF ledger by clicking on the ‘Only MTF’ filter on your ledger. This ledger reflects your MTF trades, realized profit/loss, and interest charges, including brokerage charges until your MTF book becomes zero.
Only Cash
The cash ledger can be viewed by applying the ‘Only Cash’ filter.
This ledger shows how your cash margin moves between your NSE (Default) ledger and your MTF ledger.
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When cash is moved to meet your MTF margin requirement, you’ll see a transfer entry from Cash ledger to MTF ledger.
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When that margin is released, you’ll see a transfer entry back from MTF ledger to Cash ledger.
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Important: Entries here don’t directly impact your overall balance, they simply record the cash movement from one ledger to another to support your trades.
NSE Ledger
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Combination of Cash and MTF Ledger - It shows all your ledger entries
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Also called your Normal or Default Ledger, this ledger is opened when you click on the “Ledger” button in the reports section.
Understanding Entry Posting in the Ledger
Let’s understand what happens when you:
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Take a Pay Later (MTF) trade
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Exit the trade (profit/loss)
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Convert position to CNC (Cash)
All examples below show the complete picture across all 3 ledgers with opening balances and formatted tables.
📌Example 1: Selling MTF Trade at a Loss
🧾 Day 0: Opening Balance and fund deposit
| Ledger | Date | Transaction Type | What it means? | Debit | Credit | Net Balance |
|---|---|---|---|---|---|---|
MTF | Day 0 | Opening | Opening balance | ₹0 | ||
Cash | Day 0 | Fund Deposit | Fund deposit | ₹1,00,000 | ₹1,00,000 |
Note: Cash Ledger entry above will also reflect in the NSE Ledger
Here, on Day 0, you had 0 opening balance and deposited Rs. 1,00,000 in your account. This 1,00,000 goes into your NSE ledger and simultaneously reflects in your Cash ledger. Meanwhile, there are no entries in your MTF ledger at this point of time. Cash moves only in case when an MTF position is taken on Day 0 there. On the above example, there is no existing MTF position as of this time.
🧾 Day 1: MTF Trade Worth ₹3,00,000 Taken
- ₹1,00,000 from your own funds (cash margin)
- ₹2,00,000 funded by broker at 3x leverage in Pay Later (MTF)
| Ledger | Date | Transaction Type | What it means? | Debit | Credit | Net Balance |
|---|---|---|---|---|---|---|
Cash | Day 1 | Margin Transfer | Cash margin moved | ₹1,00,000 | ₹0 | |
MTF | Day 1 | Transfer Entry | From Cash Ledger | ₹1,00,000 | ₹1,00,000 | |
MTF | Day 1 | Trade | MTF Trade Debit | ₹3,01,000 | -₹2,01,000 |
Note:
- NSE Ledger will show all the 3 entries above
- The additional Rs. 1,000 here reflects the brokerage value added to the trade value of Rs. 3,00,000. The figures here are for representation purposes only.
🧾 Day 3: Exited at ₹2,96,000 (₹4,000 loss + ₹1,000 charges)
MTF
Day 3
Transfer Entry
Initial margin used for MTF position freed up and moved To Cash Ledger
₹1,00,000
₹-6,000
Cash
Day 3
P/L Transfer
MTF PROFIT / LOSS TRANSFER. Loss moved from MTF ledger to NSE ledger
₹4,000
₹96,000
| Ledger | Date | Transaction Type | What it means? | Debit | Credit | Net Balance |
|---|---|---|---|---|---|---|
MTF | Existing Balance (as computed above) | -₹2,01,000 | ||||
MTF | Day 3 | Sale Proceeds | Sale @ ₹2,95,000 (net of charges) | ₹2,95,000 | ₹94,000 | |
MTF | Day 3 | Transfer Entry | Initial margin used for MTF position freed up and moved To Cash Ledger | ₹1,00,000 | ₹-6,000 | |
MTF | Day 3 | P/L Transfer | Loss added to MTF ledger | ₹4,000 | -₹2,000 | |
MTF | Day 3 | Charges Transfer across Buy and Sell Leg | MARGIN / CHARGES Transfer* | ₹2,000 | ₹0 | |
Cash | Day 3 | Margin Refund | From MTF Ledger | ₹1,00,000 | ₹1,00,000 | |
Cash | Day 3 | P/L Transfer | MTF PROFIT / LOSS TRANSFER. Loss moved from MTF ledger to NSE ledger | ₹4,000 | ₹96,000 | |
Cash | Day 3 | Charges Transfer across Buy and Sell Leg | MARGIN / CHARGES Transfer* | ₹2,000 | ₹94,000 |
Final Closing Balances (after Day 3)
- MTF ledger: ₹0
- Cash ledger: ₹94,000
Note: NSE ledger will show all the entries above
🧾Example 2: Selling MTF Trade at a Profit
- Trade exited at ₹3,04,000
- Net after charges: ₹3,03,000
- ₹4,000 profit
MTF
Day 3
Transfer Entry
Initial margin used for MTF position freed up and moved To Cash Ledger
₹1,00,000
₹2,000
| Ledger | Date | Transaction Type | What it means? | Debit | Credit | Net Balance |
|---|---|---|---|---|---|---|
MTF | Buy entry for MTF (computed same as above) | -201,000 | ||||
MTF | Day 3 | Sale Proceeds | Sale @ ₹3,03,000 net of charges | ₹3,03,000 | ₹1,02,000 | |
MTF | Day 3 | Transfer Entry | Initial margin used for MTF position freed up and moved To Cash Ledger | ₹1,00,000 | ₹2,000 | |
MTF | Day 3 | P/L Transfer | Profit Adjustment | ₹4,000 | -₹2,000 | |
MTF | Day 3 | Charges Transfer across Buy and Sell Leg | MARGIN / CHARGES Transfer* | ₹2,000 | ₹0 | |
Cash | Day 3 | Margin Refund | From Cash Ledger | ₹1,00,000 | ₹1,00,000 | |
Cash | Day 3 | P/L Transfer | MTF PROFIT / LOSS TRANSFER | ₹4,000 | ₹1,04,000 | |
Cash | Day 3 | Charges Transfer across Buy and Sell Leg | MARGIN / CHARGES Transfer* | ₹2,000 | ₹1,02,000 |
Final Closing Balances (Day 3)
- MTF ledger: ₹0
- Cash ledger: ₹1,02,000
📈 Example 2: Selling MTF Trade at a Profit
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Trade exited at ₹3,04,000
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Net after charges: ₹3,03,000
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₹4,000 profit
| Ledger | Date | Transaction Type | What it means | Debit | Credit | Net Balance |
|---|---|---|---|---|---|---|
Cash | Day 3 | MTF POSITION CONVERSION | Amount paid for CNC | ₹30,000 | ||
MTF | Day 3 | MTF POSITION CONVERSION | Margin released | ₹30,000 |
📌 Post this, your MTF position = ₹2,70,000. Interest will now apply only on Rs. 1,70,000 to you - Assuming Rs. 2,00,000 margin availed in above example - 30k conversion = 1.7L funded in Pay Later (MT
💡 What If You Use Pledge vs. Cash Margin?
| Scenario | Cash Ledger | MTF Ledger |
|---|---|---|
100% pledge | No impact | Full trade value debited |
100% pledge | No impact | - Full trade value debited - Initial Margin credited from Cash ledger |
Mix of cash + pledge | Initial margin (in excess of pledge value) transferred to MTF ledger | - Full trade value debited - Initial Margin (in excess of pledge value) credited from Cash ledger |
🔎 Note: Cash is only used after fully exhausting pledge margin first. Pledge margin from stocks classified as Group 1 is only considered for MTF. To see list of MTF eligible scrips, click here. In case your entire MTF position is basis cash collateral, your MTF ledger will be reduced with the corresponding amount.
⚠️ Important Notes
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*SEBI fees and MTF related transaction charges stay in your MTF ledger until your MTF book becomes zero. The charges are transferred from your MTF ledger to NSE ledger only when you square off your entire MTF position. In case of partial closure, the charges remain in your MTF ledger and you continue to accrue MTF interest charges
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Margin movement can occur:
- When position is converted to CNC
- When entire MTF position is exited
- When MTF margin requirement changes
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Your Pay Later (MTF) Profit/Loss transfer entry may not tally with the profit and loss you see in your PNL report. This is because profit/loss is posted on ledger on the basis of average price. In your P&L, the realized profit/loss is shown on the basis of FIFO logic, same as your Tax P&L.
In case you feel stuck, feel free to reach out to customer support team at services.securities@kotak.com