FAQs for Margin Trading Facility (MTF)
Margin Trading Facility (MTF) allows clients to buy eligible shares by paying only a portion of the total value upfront, while the remaining amount is funded by the broker. The purchased shares are held as collateral until the funded amount is repaid.
• Client can carry equity cash delivery position by maintaining minimum margin only. The margin
• can be in the form of stocks or cash.
• Up to 4x leverage
• Longer holding period
• Can enjoy benefits against collateral stock for margin
• Client can avoid T+5 ageing square off
• MTF debit – Normal trading will not be affected
Clients can activate the MTF facility by providing consent to the applicable MTF Terms and Conditions, either electronically or through a written request as prescribed by the broker. Click link to see procedure for activation.
Once you provide MTF Consent you can place order in MTF product on real time basis.
The list of eligible securities under MTF is available at:
Click Link to see MTF Approved Securities List by Adroit
This list may be updated periodically based on regulatory guidelines and the broker’s internal
risk policies.
Clients may receive exposure of up to 4 times the available margin, subject to the Adroit’s risk
management policies, stock-level limits, and client-level exposure limits.
Example -
Suppose a client wants to buy shares worth ₹1,00,000 under Margin Trading Facility (MTF).
- Total value of shares: ₹1,00,000
- Client’s margin contribution (25%): ₹25,000
- Amount funded by the broker: ₹75,000
The shares purchased will be held under the pledge mechanism as collateral until the client
repays the funded amount along with applicable charges and interest.
Scenario 1 – If the share price increases:
If the value of the shares rises to ₹1,10,000 and the client sells the shares:
- Sale value: ₹1,10,000
- Broker funded amount repaid: ₹75,000
- Remaining amount (before interest and charges): ₹35,000
Scenario 2 – If the share price decreases:
If the value of the shares falls to ₹90,000, the client may be required to provide additional
margin or reduce the position to maintain the required margin.
Yes. Client-level limits may apply based on the broker’s risk framework. At Adroit, the maximum exposure permitted to a client is 1 Crore.
Yes. The broker may impose stock-wise exposure limits under MTF based on liquidity, volatility, and risk management considerations.
No, Client will not get any benefit in the form of margin for any appreciation of stocks bought under margin trading.
If you buy under MTF and sell under Normal on the same day, the transaction will be treated as an intraday (normal) trade, and no MTF position will be created or carried forward.
Margin calls are currently communicated by Adroit via email and/or phone. Clients are required to either top up the margin or reduce their positions within the same trading day, or by 12:00 PM on the next trading day. In case of non-compliance, Adroit reserves the right to liquidate the shares anytime between 12:00 PM and 3:30 PM.
If the margin requirement is not fulfilled within the specified timeline, the broker may liquidate the securities held under MTF to recover outstanding dues as per the terms of the MTF policy.
Yes. The broker may add or remove securities from the MTF Approved Category List based on regulatory requirements or internal risk management policies without prior notice.
Yes. Margin requirements may be revised by the broker from time to time based on market conditions, regulatory requirements, or internal risk policies.
Margin trading positions can be checked in All Trading platforms in Net Positions Screen.
The MTF debit/outstanding amount can be carried forward for a maximum period of 180 days in accounts with no transaction activity, subject to the client maintaining the required margin at all times.
Charges under MTF may include:
- Interest on funded amount
- Brokerage
- Statutory charges
- Pledge / re-pledge charges
- Any other applicable charges as communicated by the broker.
Yes. The broker may reduce, suspend, or withdraw the MTF facility or exposure limits based on risk assessment or regulatory requirements.
Clients can close their MTF position by:
- Selling the funded securities, or
- Repaying the funded amount along with applicable charges and converting the position into delivery.
For any queries or grievances related to MTF, clients may contact the Adroit’s customer
support at: Customercare@adroitfinancia.com