Every trader knows the thrill of spotting the perfect opportunity—a stock moving just as expected, the market aligning in your favor. But then comes the big question: Do you have enough funds to make the most of it?
Markets are unpredictable, and opportunities don’t wait. Experienced traders understand this well. They don’t just think about what to trade; they think about how to trade efficiently. Because while you can’t control the markets, you can control how you manage your funds.
What if you didn’t have to block all your capital to seize an opportunity? What if you could take bigger positions with a fraction of the funds?
That’s exactly what Margin Trading Facility (MTF) on Dhan enables you to do. With up to 4X leverage, the flexibility to hold stocks as long as you want, and seamless portfolio management, MTF ensures that when the market moves, you don’t have to sit on the sidelines.
Now it is even better!
What is the Feature and What’s New?
MTF on Dhan enables you to buy stocks by paying only a portion of their total value. Dhan funds up to 75% (4X margin) of the stock’s price, allowing you to purchase more shares than your available balance would typically permit.
Here’s what new for MTF on Dhan:
- Interest Rates Slashed: Interest rates now start at just 12.49% p.a. and are slab-wise.
- Higher Funding Limits: Max funding per user is now ₹50L (up from ₹25L).
- More Stocks with 4X Leverage: Trade with just 25% margin on a 1,500+ list of stocks.
- Seamless Position Conversions: Effortlessly switch between MTF, delivery, and intraday.
How does MTF on Dhan Work?
Let’s assume you have ₹10,000 in your trading account and want to buy a stock priced at ₹1,000 per share. If the stock qualifies for a 4X margin, you can buy up to 40 shares using margin funding.
- Total value of 40 shares = ₹40,000
- Your contribution (margin) = ₹10,000
- Amount Dhan will pay = ₹30,000
Dhan charges an interest rate of 0.0342% per day on the amount funded. If you hold these shares for 10 days, your interest calculation will be:
- Daily Interest: ₹30,000 x 0.0342% = ₹10.26
- Total Interest for 10 Days: ₹10.26 x 10 = ₹102.6
After 10 days, you would pay ₹102.6 in interest for holding these 40 shares using MTF on Dhan.
How Does It Help?
- Enhanced Buying Power: MTF allows traders to buy stocks worth up to 4 times their available capital. This means you can take larger positions and potentially maximize gains.
- Efficient Capital Utilization: Instead of deploying all your capital in one stock, MTF enables better diversification by allowing you to allocate funds strategically across multiple opportunities.
- No Fixed Holding Period: Unlike some margin trading products, MTF on Dhan does not impose a predefined timeframe for holding your stocks. This gives you the flexibility to hold positions as long as required.
- Competitive Interest Rates: With an interest rate starting at just 12.49% p.a. (0.0342% per day), MTF on Dhan provides a cost-effective way to leverage capital without significant financial strain.
- Access to a Wide Range of Stocks: Dhan offers MTF for over 1,500 stocks, covering various sectors and industries. This ensures traders have ample choices for diversifying their portfolios.
- Seamless Execution and Monitoring: With Dhan’s intuitive platform, tracking margin usage, interest charges, and portfolio performance is straightforward, ensuring transparency in every trade.
Conclusion
MTF on Dhan is an excellent tool for traders looking to enhance their purchasing power without tying up excessive capital. Whether you aim to seize short-term trading opportunities or hold onto stocks for extended periods, MTF provides the flexibility and affordability you need.
With competitive interest rates and no fixed holding period, Dhan’s MTF makes margin trading more accessible and efficient. Start leveraging MTF on Dhan today and unlock greater potential in your trading journey!
