The margin trading facility (MTF) allows investors to buy shares for delivery by paying only a portion of the total value upfront, while the broker funds the remaining portion under predefined conditions. For demat account holders, this changes how positions are funded, held, and maintained after the purchase.As more retail investors explore leveraged strategies, understanding how MTF actually works has become essential. From eligibility criteria to ongoing margin maintenance, the mechanics can significantly affect both risk and returns.But how is an MTF stocks list structured, what are the key rules investors should be aware of, and how are margin requirements typically maintained in real-word trading conditions?How the MTF stocks list worksAn MTF stocks list is not a standardized list shared across the market. Instead, it refers to the set of shares that a particular broker allows clients to purchase using the margin trading facility on its platform. These lists are curated internally and may change over time based on market conditions, regulatory requirements, and the broker’s own risk assessment.Why every broker has a different listMTF Eligibility is closely linked to risk management. Brokers typically evaluate factors such as liquidity, price volatility and trading volumes before allowing a stock to be… Read MoreYourStory RSS Feed
Home Uncategorized MTF Trading Explained: Stocks lists, margin rules and what demat investors need...
