Upstox Margin Trading Facility (MTF) Explained – Charges, Interest & Benefits

This IPO News reference page covers “Upstox Margin Trading Facility (MTF) Explained – Charges, Interest & Benefits”. The page is organized around what is upstox mtf?, how to activate mtf in upstox?, upstox mtf charges breakdown – interest rates, pledge/unpledge, and other charges, upstox mtf interest rates & charges, mtf auto square-off charges. IPO News presents the structured facts and tables in its own layout and wording.

Topics Covered

• What is Upstox MTF?
• How to Activate MTF in Upstox?
• Upstox MTF Charges Breakdown – Interest Rates, Pledge/Unpledge, and other charges
• Upstox MTF Interest Rates & Charges
• MTF Auto Square-Off Charges
• How to place MTF order in Upstox?
• Steps to place MTF buy order via web/app:
• Upstox MTF Maximum Funding
• Upstox MTF Vs Zerodha, Angel One, and Groww (Comparison)
• Upstox MTF Pros and Cons
• Pros
• Cons
• Who Should Use Upstox MTF?
• Compare Stock Brokers Side-by-Side
• Frequently Asked Questions
• 1. What is Upstox MTF?−
• 2. How Upstox MTF Works?+
• 3. What is the interest rate of Upstox MTF?+
• 4. How long can I hold MTF stocks in Upstox?+
• 5. What happens if I don’t maintain margin?+
• 6. How to sell MTF positions in Upstox?+

Key Facts

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• You pay a margin, say 25%
• Borrow up to 75% of trade value from the broker
• Hold positions for an indefinite time (365 days holding limit removed)
• Example: If you have ₹25,000, you can buy stocks worth ₹1,00,000 using MTF.
• Select Delivery and check the box for “Buy with 50% funds via MTF”.
• The most important factor in MTF is interest cost. Upstox has slab-based interest charges – ₹20 interest per day on MTF-funded amount upto ₹40,000.
• ₹40,000 borrowed MTF funds → ₹20/day interest
• ₹40001-₹80,000 borrowed MTF funds → ₹40/day interest
• ₹80,001-₹1,20,000 borrowed MTF funds → ₹60/day interest
• ₹50,000 borrowed MTF funds → ₹20/day interest
• ₹50001-₹100,000 borrowed MTF funds → ₹40/day interest
• Note: Above rates are applicable for the first ₹100,000 of funding only. After this, 18% p.a. interest is charged.
• Once the order is executed, you’ll receive the CDSL pledge request by 7 PM on T day.
• Authorize the pledge request before 9 PM on the same day.
• You can take MTF positions up to ₹5 crore. This is the total value of stocks you can buy using MTF. Out of total, Upstox funds up to 75% of your trade value.
• Total Positions = ₹5 crore
• Upstox funding = ₹3.75 crore
• Your margin = ₹1.25 crore
• For most users – ₹25L practical MTF limit initially.
• High net worth (HNI) and ultra HNI clients can get ₹5 crore exposure with ₹3.75 funding.
• Limited stocks for MTF – 477 stocks
• Upstox funds up to 75% (4x leverage)
• You can hold MTF positions as long as you want without any limitation. Yes, Upstox removed 365 days holding restriction on MTF.
• Upstox can force selling MTF position and sell pledged shares. Upstox auto square off charges are ₹50 – ₹75 per order (varies by plan).

Data Tables

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