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Get 4X Margin with

Margin Trading Facility (MTF)

Get 4X Margin with

Margin Trading Facility (MTF)

Trade and invest with 4X leverage on 950+ stocks.


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MTF MTF

Benefits of Margin Trading Facility

Benefits of Margin Trading Facility

Holding Period Holding Period
Unlimited Holding Period

Sell your MTF holdings only when you want to.

Margin Funding Exposure Margin Funding Exposure
Margin Funding Exposure

Up to 75% of the margin will be funded by Dhan!

Number of Scrips Number of Scrips
950+ Scrips

Trade & invest in 950+ scrips with Margin Trading Facility on Dhan.


MTF Estimator (Industry-First) MTF Estimator (Industry-First)
MTF Funding Estimator

Understand the MTF benefits you'll get from Dhan for every scrip before investing.

Same Order Flow Same Order Flow
Integrated Order Flow

You'll be able to choose MTF in the existing Order Placement flow that's simple & easy!

MTF Estimator (Industry-First) MTF Estimator (Industry-First)
Dedicated MTF Section

View shares bought via MTF in a dedicated section in your holdings.


No Additional Effort No Additional Effort
Sell Instantly

Sell from MTF order screen instantly without the need for separate un-pledging.

Interest free Interest free
Interest Free Funding (T+2 days)

Use 4X interest free margins until settlement day.

Multiple Lots - One Charge Multiple Lots - One Charge
Multiple Lots - One Charge

MTF pledge charge levied once per scrip, regardless of the no. of orders for the same scrip.


Easy Pledge Process Easy Pledge Process
Easy Pledge Process

You can pledge your holding to get MTF benefits easily.

No Hidden Charges No Hidden Charges
No Hidden Charges

View all charges and fees with the Txn Estimator on Dhan.

No Additional Effort No Additional Effort
No Additional Effort

MTF is active for all Dhan users and is visible for all tradeable scrips on the Order window.


Margin Trading Facility for All!

Margin Trading Facility for All!

Swing Trader
Swing Traders

Gain from market swings over a short time with limited funds.

BTST Traders
BTST Traders

Use interest free margins for Buy Today Sell Tomorrow trades.

Long term Investor
Long Term Investors

Buy stocks with a small margin and hold it for the long term.

Available for all User Available for all User
Dhan Users

Every Dhan user can access Margin Trading Facility!


How Does MTF Work?

How Does MTF Work?

Margin Trading Funding on Dhan allows you to take positions on stocks for a fraction of the total value. The rest? It’s funded by Dhan!

Patch

Pledge your holdings anytime between 4 PM - 9 PM on the same day with Dhan’s unique Instant MTF Pledge feature.



How to Trade with Margin Trading Facility?

How to Trade with Margin Trading Facility

5 Steps to Trade With MTF on Dhan

5 Steps to Trade With MTF on Dhan

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Frequently Asked Questions


Margin Trading Facility (MTF) allows equity traders to take up leveraged positions. What this means is simple - the trader will pay a fraction of the position value while the broker funds the remaining amount. At Dhan, we give up to 4X leverages on 950+ stocks. Example below:

If a client has Rs. 25,000, he can buy a stock of worth Rs. 1,00,000 with 4X leverage provided by Dhan.

Dhan provides Margin Trading Facility (MTF) that allows you to trade with 4x leverage on 950+ scrips. That’s not all - you can even access the industry-first MTF estimator to understand the benefits of margin funding before entering a trade.

Margin trading can be useful for swing traders and BTST traders who aim to capture short-term price swings. On Dhan, you can trade with 4x leverage using margin funding. All you have to do is open a margin trading account!

MTF allows you to do more with less. That’s why it’s the go-to feature for swing traders and BTST traders. For example, you could get 4x leverage on Dhan on 950+ scrips.

The interest rate of MTF on Dhan is 0.0438% per day, starting from the settlement date on the amount funded.

Trading with MTF on Dhan is simple and convenient. The order flow for placing a trade with MTF is the same as trading or investing. Simply select MTF as order type and place the order. Once it goes through, you’ll be able to view all your MTF holdings in one single screen!

Cash as well as non cash holdings can be used as collateral while placing trades via MTF. Available Funds for MTF would be your combined ledger plus pledged holdings.

Stocks bought using Margin Funding can be held for an unlimited number of days, provided you maintain the necessary margins on a daily basis. Holdings will be liquidated if holding Coverage falls below 20%.

An interest of 0.0438% will be charged per day effective from settlement date on the funded amount.

Shares bought using MTF must be pledged in favour of your broker. Follow these steps to authorise the pledge:

  • Go to the Positions page on your Dhan app or web on or after 4 pm on trade day.
  • Here you will see an alert to “Authorise” your holdings.
  • On tapping Authorise, you will see an intermittent page reflecting the shares that you have bought using MTF. T+1 & T+2 settlement holdings will reflect separately.
  • On tapping “Authorise T+1/ T+2 Holdings” a CDSL page will open up wherein you will need to enter the OTP received. Please note, both T+1 & T+2 Holdings will need to be pledged separately with the help of 2 OTPs to complete the process.

According to exchange regulations, few stocks are currently being settled on T+1 days while others are settled on T+2 days. Accordingly, both holdings will need to be authorised for pledging separately on Dhan.

In such a scenario, your holdings will continue to reflect under MTF for upto T+2 days. Post that, they will be converted into normal holdings. Incase of insufficient balances in your account, they will be sold by our systems on T+7 days.

Here is a list of shares that can be bought using Margin Funding.

To exit, simply select MTF as order type while selling. No separate un-pledging required .

A pledge and un-pledge charge of ₹ 12.5 /transaction / ISIN + GST each is applicable.

Yes. However, you (the client) must have a 20% upfront margin for selling such holdings. To explain with an example: If a client has ₹ 25,000 and he wants to buy Reliance on which we give 4X leverage, he can buy Reliance worth ₹ 1,00,000. Now for selling this stock on the next day, the client is required to have an upfront margin (Free limit) of ₹ 20,000. This is because settlement of the stock is not yet complete and for selling, stock margin is applicable.

MTF holdings can be liquidated by our Risk Management Systems (RMS) under the following circumstances:

  • MTF holdings have not been pledged within the cut off time.
  • When required margins are not being maintained.
  • Holding Coverage has fallen below 20%.
Example below (refering to Question no. 1):

A client had Rs. 25,000, he bought a stock of worth Rs. 1,00,000 with 4X leverage provided by Dhan.
Now, if the value of stock falls to Rs. 93,000 client will be squared off as per below formula:
Combined Ledger : -75,000
Holding Full Value: 93,000
Holding Coverage = (-75,000 + 93,000) / 93,000 = 19%



4X
4X

Get 4x Margin for Trading & Investing

Choose MTF on Dhan and do more with your capital.

Choose MTF on Dhan and do more with your capital.