1. Margin Traded Funds Order typically refers to a type of order related to margin trading in financial markets. Margin trading allows investors to borrow funds from a broker to trade financial assets.
For Example: You want to buy stocks worth ₹10. lakhs (about 666 shares of XYZ Ltd. at ₹1,500 per share). With just ₹2.5 lakh, plus funding from ₹7.5 lakhs Choice, you can do it. Assuming a 20% increase in stock value, you could make a profit of ₹1.99 lakhs. Without MTF, your profit would only be ₹49,800 because you could only buy 66 shares.
2. MTF Order is a Delivery order.
3. MTF Order is allowed only in cash segment.
Below are the screenshots of How to place MTF Order from FinX app and website.
How to place MTF Buy Order:
1. Select the MTF Tab, if you want to place the MTF Order.
2. Enter the desired Price and Quantity.
3. Place the Buy order.
How to place Sell MTF Order:
1. Select the MTF Tab, if you want to sell the MTF holding.
2. Enter the desired Price and Quantity.
3. Place the Sell order.
How MTF Order will be seen in Orderbook and Position:
MTF Order will be seen in the Orderbook along with the MTF tag.
MTF tag can be seen in the Position for the MTF orders on the same day.
How is the MTF Pledge process post placing the order:
1. Post placing the MTF order, user will receive the Pledge SMS and Email from the depository after-market hours.
2. User will need to Pledge the MTF Stocks by T+1 day till 2 PM.
3. On clicking on the depository link, follow the below process -
a. User will need to enter the PAN or DP No.
b. Check the MTF Pledge stocks
c. Click on Generate OTP
d. Enter the OTP
How MTF Order will be seen in the Holding:
MTF Stocks will be seen in the Holding along with the MTF tag.
How to know MTF funding and the Margin Utilized in MTF on Funds Page :
1. MTF Funding - This is the total amount for which the MTF order is placed.
2. My Funds - This is the total amount for which user’s funds is used while placing the MTF orders.
3. Choice Funds - This is the amount which Broker (Choice Broking) has funded the amount while placing the MTF order.
How to see the MTF entries in Ledger:
MTF Ledger can be seen by selecting the MTF Ledger from 3 dots
FAQ's
- Will I see the MTF product tab in Choice FinX App/Web if it's not allowed for a specific stock?
Answer - No, the MTF tab will only appear for stocks where it's allowed. You can find the list of allowed stocks here: https://choiceindia.com/file-download - What's the deadline for completing the pledge process after buying the MTF Stock?
Answer - You must complete the pledge process by the next trading day at 2 pm. - Can I place an MTF order if I haven't submitted DDPI/POA?
Answer - No, you need to submit DDPI/POA to place an MTF order - Can I place MTF order in F&O, currency, or commodities?
Answer - No, MTF is only for equity shares. - Can the MTF orders be converted to Intraday or Delivery from Positions?
Answer - No. You cannot convert the MTF order to Intraday or Delivery. - What is the benefit in case Delivery has 4x margin benefit and MTF has 3x margin benefit?
Answer - User has the 4x margin benefit for T-day and the 3x margin benefit for 90 days period. - What will happen if the MTF stock is not pledged by T+ 1 day till 2 pm?
Answer - The stock will be considered as Delivery, and the user will have to clear the debit balance by T+7 days, or else it will be squared off. - Can MTF order be placed as Intraday order?
Answer - No. MTF is Delivery product. - What will be the charges on MTF order?
Answer - An interest of 0.058% per day will be charged on the funded amount by the broker. Interest will be charged on every month end. Pledge/Unpledge will cost Rs10 + GST/stock.