1. What is MTF, and what is the difference between MTF and regular delivery trading?

An MTF facility would allow you to buy stocks at a certain percentage of the stock price, and the rest would be funded by your broker. Unlike delivery trading, where all the money is paid during purchase.

2. What is the holding period in Dhan of MTF shares?

MTF-funded shares may be held indefinitely in Dhan, provided that you maintain the minimum required margin, make regular interest payments, and keep the coverage ratio. It never expires, but daily interest is charged up to the time you get out of the position or change it to delivery.

3. Is it possible to compute interest before MTF?

The MTF Calculator of Dhan will enable you to determine the daily and total cost of interest on the amount you had, the cost of the stock, and the amount you had invested. This will help you to better strategise your trades and avoid cost runaway.

4. What happens if my margin coverage ratio is below 20%?

A holding coverage ratio of less than 20% may force Dhan to take a margin call or to automatically square off the position to prevent further losses.

5. Can I convert my MTF holdings to delivery?

Yes, under Dhan, you can sell your shares that were financed by MTF to delivery through repayment of funds at any time with interest. It is best when you would like to have positions on a long-term basis and are not interested in paying constant MTF fees.