The margin benefit under MTF means you can buy more shares than your available cash would normally allow. Instead of paying the full price of a stock, you only pay a fraction called the margin and Samco funds the rest.
A simple example
Assume a stock is trading at ₹920 per share and MTF offers 3.5x leverage on it.
- Without MTF: You need ₹920 per share
- With MTF: Your effective cost per share comes down to approximately ₹262.85
So with ₹30,000 in your account and 4x leverage, your total buying power becomes ₹1,20,000. You can buy shares worth ₹1,20,000 while only putting in ₹30,000 from your side.
What this means practically
- You can take larger positions without blocking a large amount of capital
- Your remaining funds stay free for other trades or opportunities
- You still hold the shares in delivery, the MTF position is not an intraday trade
Interest is charged only on the funded amount (what Samco covers), not on the margin you put in. The exact leverage on each stock is displayed in the app at the time of placing the order.
Easy & quick
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