Zerodha MTF Margin Trading Funding: A Complete Guide

This IPO News reference page covers “Zerodha MTF Margin Trading Funding: A Complete Guide”. The page is organized around zerodha margin trading facility (mtf) meaning, zerodha mtf interest rate, brokerage charges, and others, zerodha margin interest rate, zerodha mtf brokerage and other charges, zerodha margin trading limit (maximum funding). IPO News presents the structured facts and tables in its own layout and wording.

Topics Covered

• Zerodha Margin Trading Facility (MTF) Meaning
• Zerodha MTF Interest Rate, Brokerage charges, and others
• Zerodha Margin Interest Rate
• Zerodha MTF Brokerage and other charges
• Zerodha Margin Trading Limit (Maximum Funding)
• Zerodha MTF Eligibility and Account Activation
• How to place an MTF order in Zerodha?
• Zerodha MTF: A Quick Comparison with Angel One and Groww
• Zerodha MTF Pros
• Zerodha MTF Cons
• Zerodha MTF Latest updates
• Compare Stock Brokers Side-by-Side
• Frequently Asked Questions
• 1. What is MTF in Zerodha?−
• 2. Who is eligible for Zerodha MTF?+
• 3. How to convert MTF to delivery in Zerodha?+
• 4. How to place a GTT Order using MTF?+
• 5. How to sell MTF shares in Zerodha?+
• 6. How to check the interest charged on MTF in Zerodha ?+

Key Facts

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• Zerodha offers upto 80% margin of the trade value on MTF eligible stocks. And in return, it charges an interest rate per day, until the MTF positions remain active.
• Zerodha margin facility is available on over 1300 stocks across different sectors.
• Zerodha offers upto 5x leverage on eligible MTF stocks. Means you pay just 20% to buy stocks and remaining 80% is funded by Zerodha.
• MTF is not free – Zerodha charges interest on it. Zerodha margin interest rate is 0.04% (14.6% annual). The interest is charged on the funded value on a daily basis.
• Zerodha MTF interest of 0.04% is applied daily until repayment.
• The MTF interest is charged from T+1 day until the MTF stocks are not sold.
• Zerodha Margin Interest Example: Suppose you place shares worth ₹1,00,000 using MTF. You pay ₹25,000 and Zerodha funds the rest ₹75,000, under MTF.
• MTF Interest: ₹75,000 × 0.04% = ₹30 per day. Suppose you hold MTF positions for 20 days, so the total interest cost will be ₹600.
• In addition, Zerodha MTF auto-square charges are ₹50 per order. Zerodha may square off MTF positions for the following reasons:
• If the loss exceeds 20% of your capital. For example, if you funded ₹20,000 on the MTF order, and your loss exceeds ₹4,000, Zerodha square-off positions proportionately.
• If the loss exceeds 80% of Zerodha's funded amount say if in the above example, Zerodha have funded ₹40,000 and your loss exceeds ₹32,000./li>
• If the loss exceeds 90% of Zerodha's funded amount, then the MTF positions will be converted into CNC (Cash N Carry).
• Currently, Zerodha offers MTF facility only on NSE.
• You will be charged with 0.04% interest on the MTF funded amount, until the time you do not sell MTF shares or convert them into delivery (CNC).

Data Tables

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