Margin Trading can multiply gains, but it’s not for everyone. Understanding when and who should use MTF is critical to avoid costly mistakes.
Who Can Use MTF?
Active traders with a strong understanding of technical trends
Investors looking to hold a stock for a few days to weeks
Individuals who can monitor markets regularly
Who Should Avoid It?
Long-term investors (MTF is not a substitute for investing)
New or emotional investors prone to panic selling
Those unaware of margin requirements and risk exposure
When to Use MTF Smartly
| Scenario | Is MTF Suitable? |
|---|---|
| Intraday breakout trading | ✅ Yes |
| Swing trading (3–10 days) | ✅ Yes |
| Long-term investing (1 yr+) | ❌ No |
| Volatile market conditions | ⚠️ Use with caution |
Example
Suppose you see bullish momentum in Adani Power and want to buy ₹1,00,000 worth of stock. You contribute ₹30,000 and fund the rest via MTF.
Tip: Check the MTF stock list to ensure the stock is approved for margin trading and use rupeezy’s MTF calculator to view the exact margin, interest, and expiry date.