MTF gives you more buying power, but the risks are proportionally higher too. Here is what to be aware of before using it.

1. Losses are magnified
You are buying more shares than your capital alone allows. If the stock falls, your losses are multiplied by the leverage. Samco offers up to 4X leverage on eligible securities so a significant drop in stock value can erode your margin quickly.

2. Margin shortfall and auto square-off
Positions are marked to market daily. If your margin falls below the required level, Samco will notify you via SMS, email, or platform notification to add funds or pledge more securities. If the shortfall is not covered in time, Samco reserves the right to liquidate your positions without prior notice. There are two types of square-off: one triggered by a margin shortfall, and one triggered by market risk factors like volatility or illiquidity the latter can happen regardless of whether your margin is currently sufficient.

3. Corporate actions can impact your position
Events like dividends, stock splits, bonus issues, mergers, or rights issues affect the valuation and margin requirements of MTF holdings. When a corporate action occurs, MTF positions are converted to CNC/Delivery. You must ensure sufficient margin is available to accommodate these adjustments.

4. Dormant account risk
If your trading account becomes inactive for an extended period while you still hold an open MTF position, Samco has the right to activate the account and square off the MTF position without prior notice. This applies both when the account has already become dormant and when dormancy is reasonably expected.

5. Stock eligibility can change
Not all stocks are available under MTF. Samco maintains a list of over 800 MTF-eligible stocks, but securities under surveillance measures like ASM or GSM, or those deemed illiquid, may be excluded. Samco can also modify the eligible securities list at its discretion and without prior notice.