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Smart Leverage: Unlock Bigger Opportunities with MTF
Leverage is a powerful tool that allows traders to take larger positions in the stock market with a relatively smaller upfront investment. Margin Trading Facility (MTF) enables investors to amplify their potential returns by borrowing funds to trade stocks, offering greater flexibility and enhanced profit opportunities. With ATS , MTF empowers you to optimize your capital efficiency while managing risks effectively. By using MTF, you can enter larger trades without having to commit the full purchase amount upfront. This means you can diversify your portfolio, seize market opportunities, and capitalize on short-term price movements without exhausting your capital. It’s particularly beneficial for traders looking to maximize their gains while keeping their liquidity intact. Moreover, ATS provides a seamless MTF experience with competitive interest rates, easy access to funds, and robust risk management tools to ensure you trade with confidence. Whether you are an experienced trader or just starting, leveraging MTF can help you strategically enhance your market exposure while maintaining financial flexibility. Discover the advantages of smart leverage with MTF and take your trading journey to the next level with ATS —where growth meets opportunity!

How do I apply for MTF in ATS?

To apply for MTF with ATS, follow these steps:

1. Visit the Aditya Trading Website:

  • Go to the Aditya Trading website.

2. Log in to Your Account:

  • Enter your credentials (username and password).
  • Click on the "Log In" button.

3. Navigate to Profile:

  • Select Activate MTF from the Profile section.

4. OTP Verification:

  • Click Proceed and enter the OTP sent to your registered mobile number.

5. Digital Signing:

  • Complete the Sign Now process by entering your Aadhaar card number and checking the required box.

6. Final OTP Verification:

  • Verify the process using the second OTP sent to your registered mobile.

7. Confirmation:

  • You will receive a confirmation message via WhatsApp.
  • You will also receive a confirmation email.

MTF will be activated within 24 hours of completing the process. Now, to activate DDPI/POA, follow these steps:

1. Visit Website:

  • Go to the Aditya Trading website.
  • Click the three dots at the top-right corner.

2. Navigate to Profile:

  • Select Profile → Activate POA/DDPI → Click Proceed.

3. Verification:

  • Send the code to your registered mobile number.
  • Enter the OTP received.

4. Digital Signing:

  • Check the box to agree to terms.
  • Enter your Aadhaar number and select Send OTP.
  • Enter the OTP to verify and sign.

5. Confirmation:

  • POA/DDPI will be activated within 72 hours.

Buying and Selling Stocks Using MTF

Selling Stocks

1. Access Holdings:

  • Access the ATS Trading Platform and log in.

2. Select Stock:

  • Choose the stock you want to sell.

3. Order Details:

  • Enter the quantity and select the order type (Limit or Market Order).

4. Execute Order:

  • Click Sell to complete the transaction.

FAQs

1. What is Margin Trading Facility (MTF)?

Margin Trading Facility (MTF) allows investors to purchase stocks by paying only a portion of the total value upfront while the broker funds the rest. This helps traders leverage their capital for larger positions but includes interest charges and minimum margin requirements.

Example: With ₹1,000 and 3x margin, you can buy stocks worth ₹3,000, where ₹2,000 is funded by ATS.

  • Daily interest on ₹2,000 at 0.04% = ₹0.80
  • Interest for 10 days = ₹8

2. What are the benefits of using MTF?

  • Helps you trade with limited capital.
  • Allows larger positions in the market.
  • Increases potential returns.

3. What are the risks of Margin Trading?

  • Losses can exceed invested margin if stock prices fall.
  • Interest charges on the borrowed amount.
  • Possible margin calls if stock value declines.

4. Who can use the Margin Trading Facility?

Any investor with a demat and trading account with an eligible broker can use MTF. Brokers may require minimum balances, trading history, and risk profile assessment.

5. How can I repay the margin amount?

Two ways to repay:

  1. Adding funds to your trading account.
  2. Selling MTF-purchased stocks.

6. Is MTF available for all stocks?

No, only select stocks approved by exchanges (NSE/BSE) and brokers are eligible.

7. What happens if I fail to meet a margin call?

The broker can sell your stocks if the value falls below the required margin and you don’t add funds.

8. What is the interest rate charged for Pay Later (MTF)?

If you fail to meet a margin call, the broker has the right to square off (sell) your open positions to recover the borrowed funds. A margin call occurs when the value of your collateral falls below the required margin due to a decline in the stock price. If additional funds or securities are not provided promptly, the broker will liquidate your positions to cover the shortfall. This could lead to a loss, especially if the market conditions are unfavourable.

9. What is the interest rate charged for Pay Later (MTF)?

An interest rate of 0.049% per day (18% per annum) + GST is charged on the borrowed amount.

10. What is the maximum tenure for holding stocks under MTF?

The maximum tenure for holding stocks under MTF typically varies between 90 and 365 days, as determined by our company policy. During this time, you are required to pay ongoing interest on the borrowed amount and ensure that the minimum margin is consistently maintained. Failure to meet these conditions may result in liquidating your positions to recover the funds. Hence, it is crucial to monitor your account closely and have a well-defined exit strategy in place.