Margin Trading Facility - Key Features & MTF Pledge Process | Motilal Oswal

Margin Trading Facility (MTF).

Don't let lack of funds limit your trading ambitions.

What is Margin Trading Facility (MTF)?

Margin Trading Facility lets you invest in hand-picked stocks without making a full upfront payment.

What’s more is it allows up to 4X leverage on select stocks and allows you to hold them for an indefinite period of time.

Key Features

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Invest more with limited funds

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Indefinite holding period

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Improve the percentage return
on the capital deployed

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Attractive interest rate


MTF Calculator

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MTF Pledge


As per SEBI mandate when shares are bought with Margin Trading Facility it has to be pledged within the prescribed deadline to continue holding the position.

How to Pledge

Step 1

You will receive communication from CDSL on Email/SMS

Step 2

Click on the link & enter your Pan number

Step 3

Select the stocks to pledge

Step 4

Generate & enter OTP to confirm pledge


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FAQs On MTF

A standard interest rate of 0.053% per day is charged on the borrowed amount only.

You can hold your positions under MTF as long as you maintain the required margin in your account.

When you buy shares under Margin Trading Facility, you will have to pledge those shares within prescribed deadline to continue holding the position. As per SEBI mandate when shares are bought with Margin Trading Facility it has to be pledged to continue holding the position.

There will be a charge of Rs. 20 + GST for Pledging / Unpledging of MTF Shares in accordance with depositories NSDL and CDSL. These charges are applicable on a per-ISIN basis in each instruction.

The margin requirements to trade under MTF differ from Scrips to Scrips.

Square-off will be triggered in either of the below scenarios:

1.You need to pledge the shares purchased under MTF, before the prescribed time period. If you fail to do so, your shares will be squared-off after 5 trading days.

2. If there is a margin shortfall, shares will be squared-off 4 trading days after the shortfall has occurred.

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