instruments · intermediate

MTF

Margin Trading Facility lets eligible clients buy equities by paying part of the value as margin.

Brokers offer MTF under SEBI rules using approved securities and funding arrangements.

Interest or funding charges typically apply on the financed portion.

Collateral and pledged shares may be required to maintain MTF positions.

Forced square-off can occur if margins fall short of exchange or broker requirements.

Part of the Market Pulse Term of the Day series — factual market vocabulary, not investment advice.