{"id":344247,"date":"2026-11-12T09:54:11","date_gmt":"2026-11-12T04:24:11","guid":{"rendered":"https:\/\/univest.in\/blogs-2\/?p=344247"},"modified":"2026-11-12T09:54:11","modified_gmt":"2026-11-12T04:24:11","slug":"margin-trading-facility-mtf-how-it-works","status":"publish","type":"post","link":"https:\/\/univest.in\/blogs-2\/margin-trading-facility-mtf-how-it-works\/","title":{"rendered":"Margin Trading Facility (MTF) Explained: How It Works, What It Costs and the Risks of Borrowing to Buy Shares"},"content":{"rendered":"

The facility lets you buy approved stocks by paying only a part upfront. Interest is charged daily on the funded amount. A fall in price can trigger a margin call and a forced sale.<\/em><\/p>\n

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Quick Answer<\/strong><\/p>\n

The service lets you buy shares by paying only a portion of the value upfront, while your broker funds the rest and charges daily interest on it. The shares you buy are pledged to the broker as security, and you can hold them for as long as you keep the required margin. It magnifies gains and losses alike, and a sharp fall can lead to a margin call or a forced sale.<\/p>\n<\/p><\/div>\n

A margin trading facility, usually called this arrangement, is the broker-funded way to buy shares for delivery when you do not want to pay the full amount upfront. It sounds attractive, because a small amount of your own money controls a larger position.<\/p>\n

This guide explains how the facility works step by step, what the interest costs, which stocks qualify, and why a margin call can turn a small mistake into a large one. A simple worked example shows the cost in plain numbers.<\/p>\n

Click Here – Get Free Investment Predictions<\/strong><\/a><\/p>\n

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