{"id":11334,"date":"2026-04-26T07:53:56","date_gmt":"2026-04-26T07:53:56","guid":{"rendered":"https:\/\/lemonn.co.in\/blog\/?p=11334"},"modified":"2026-04-20T07:57:56","modified_gmt":"2026-04-20T07:57:56","slug":"how-to-use-mtf-lemonn-step-by-step-guide","status":"publish","type":"post","link":"https:\/\/lemonn.co.in\/blog\/finance\/how-to-use-mtf-lemonn-step-by-step-guide\/","title":{"rendered":"How to Use MTF to Buy More Stocks on Lemonn"},"content":{"rendered":"
\"How<\/figure>\n\n\n

Margin Trading Facility (MTF) on Lemonn lets you buy up to 4x more stocks than your available capital. This step-by-step guide walks you through everything – from prerequisites to placing your first MTF order, calculating your interest costs, and closing your position.<\/p>\n\n\n\n

By the end of this guide, you will be confident enough to use MTF responsibly and effectively on the Lemonn platform.<\/p>\n\n\n\n

Before You Start: MTF Prerequisites<\/strong><\/h2>\n\n\n\n

Before you can place an MTF order on Lemonn, ensure you have the following:<\/p>\n\n\n\n

    \n
  • A fully activated Lemonn trading and demat account (free to open, zero AMC).<\/li>\n\n\n\n
  • MTF feature enabled in your account settings (one-time activation via e-sign).<\/li>\n\n\n\n
  • Minimum 20% of the total purchase value as available margin in your account (SEBI requirement).<\/li>\n\n\n\n
  • The stock you want to buy must be on the MTF-eligible list (2,200+ stocks available on Lemonn).<\/li>\n\n\n\n
  • A basic understanding of how leverage amplifies both gains and losses.<\/li>\n<\/ul>\n\n\n\n

    If your MTF feature is not yet activated, go to Profile > Settings > Margin Trading Facility in the Lemonn app and complete the e-sign process. It takes under 5 minutes.<\/p>\n\n\n\n

    Step-by-Step: Buying Stocks Using MTF on Lemonn<\/strong><\/h2>\n\n\n\n
      \n
    1. Open the Lemonn app and log in to your account.<\/li>\n\n\n\n
    2. Search for the stock you want to buy using the search bar. Verify it is MTF-eligible (an MTF badge or toggle will appear).<\/li>\n\n\n\n
    3. Tap on the stock to open the stock detail page. Review the current price, chart, and fundamentals.<\/li>\n\n\n\n
    4. Tap ‘Buy’. On the order screen, toggle ‘MTF’ to ON. This activates the margin trading option for this order.<\/li>\n\n\n\n
    5. Enter the quantity of shares you want to purchase. The screen will show your required own margin (typically 20-25% of total value) and the amount Lemonn will fund.<\/li>\n\n\n\n
    6. Review the order summary: total value, own margin required, borrowed amount, and estimated interest per day. Confirm the details.<\/li>\n\n\n\n
    7. Tap ‘Place Order’. Your order will be executed at market or limit price. The shares will be credited to your demat account and pledged as collateral automatically.<\/li>\n<\/ol>\n\n\n\n

      How to Calculate Your MTF Interest Cost<\/strong><\/h2>\n\n\n\n

      Interest on MTF is calculated daily on the outstanding borrowed amount. The formula is:<\/p>\n\n\n\n

      Interest = (Borrowed Amount x Rate x Number of Days) \/ 365<\/p>\n\n\n\n

      Example: You borrow Rs.50,000 at 10.95% per annum for 30 days.<\/p>\n\n\n\n

      Interest = Rs.50,000 x 0.1095 x 30 \/ 365 = Rs.450.6<\/p>\n\n\n\n

      So for a 30-day MTF position with Rs.50,000 borrowed, you pay approximately Rs.451 in interest. This is debited from your account – make sure your cash balance covers it.<\/p>\n\n\n\n

      MTF Interest Cost Table<\/strong><\/h2>\n\n\n\n

      Here is a quick reference table for estimated interest costs at different borrowed amounts and holding periods (at 10.95% p.a.):<\/p>\n\n\n\n

      Borrowed Amount<\/strong><\/th>7 days<\/strong><\/th>30 days<\/strong><\/th>90 days<\/strong><\/th>180 days<\/strong><\/th><\/tr><\/thead>
      Rs.10,000<\/td>Rs.21<\/td>Rs.90<\/td>Rs.270<\/td>Rs.540<\/td><\/tr>
      Rs.25,000<\/td>Rs.53<\/td>Rs.225<\/td>Rs.675<\/td>Rs.1,350<\/td><\/tr>
      Rs.50,000<\/td>Rs.105<\/td>Rs.451<\/td>Rs.1,352<\/td>Rs.2,704<\/td><\/tr>
      Rs.1,00,000<\/td>Rs.210<\/td>Rs.901<\/td>Rs.2,703<\/td>Rs.5,406<\/td><\/tr>
      Rs.2,00,000<\/td>Rs.420<\/td>Rs.1,803<\/td>Rs.5,407<\/td>Rs.10,811<\/td><\/tr>
      Rs.5,00,000<\/td>Rs.1,050<\/td>Rs.4,507<\/td>Rs.13,521<\/td>Rs.27,041<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

      Note: All values are approximate. Actual interest is calculated on a daily basis and may vary slightly.<\/p>\n\n\n\n

      MTF Best Practices for Beginners<\/strong><\/h2>\n\n\n\n
        \n
      • Start small: Use MTF on a small portion of your portfolio first. Get comfortable with margin calls, interest accrual, and the psychology of leveraged positions before scaling up.<\/li>\n\n\n\n
      • Choose quality stocks: MTF works best with large-cap, fundamentally strong stocks that are less volatile. Avoid using MTF on penny stocks or highly speculative names.<\/li>\n\n\n\n
      • Set a target and stop-loss: Before entering an MTF position, decide at what price you will book profits and at what price you will cut losses. Stick to these levels.<\/li>\n\n\n\n
      • Monitor your margin: Check your MTF margin ratio regularly. If the stock falls, your margin coverage drops. Add funds proactively rather than waiting for a margin call.<\/li>\n\n\n\n
      • Factor in interest: Include the interest cost in your profit calculations. A stock that returns 10% in 6 months with 4x leverage sounds great – but if your interest cost is 5% of the borrowed amount, your net return is lower.<\/li>\n\n\n\n
      • Do not over-leverage: Just because Lemonn offers 4x does not mean you should always use 4x. Use the leverage that aligns with your risk tolerance.<\/li>\n<\/ul>\n\n\n\n

        How to Close or Repay an MTF Position<\/strong><\/h2>\n\n\n\n

        Closing an MTF position on Lemonn is straightforward:<\/p>\n\n\n\n

          \n
        • Sell the MTF stocks: Go to your portfolio, select the MTF holding, and tap Sell. The proceeds will automatically repay the borrowed amount, and any surplus returns to your cash balance.<\/li>\n\n\n\n
        • Partial repayment: You can also sell part of your MTF holding to reduce the borrowed amount and lower your daily interest cost.<\/li>\n\n\n\n
        • Add cash to reduce borrowing: Transfer funds to your Lemonn account. This excess cash will reduce the outstanding borrowed amount, thereby reducing your daily interest cost.<\/li>\n\n\n\n
        • The unpledge happens automatically: Once you sell all MTF shares, Lemonn will unpledge them and close the MTF position. You do not need to do anything separately.<\/li>\n<\/ul>\n\n\n\n

          Frequently Asked Questions<\/strong><\/h2>\n\n\n
          \n
          \n
          \n

          Q1. How much leverage can I get on Lemonn MTF?<\/strong><\/h3>\n
          \n\n

          Lemonn offers up to 4x leverage on MTF-eligible stocks. This means if you have Rs.25,000, you can buy up to Rs.1,00,000 worth of stocks.<\/p>\n\n<\/div>\n<\/div>\n

          \n

          Q2. Is interest charged on weekends and holidays?<\/strong><\/h3>\n
          \n\n

          Yes. MTF interest accrues on a daily basis including weekends and public holidays, as the borrowed funds are outstanding during those days too.<\/p>\n\n<\/div>\n<\/div>\n

          \n

          Q3. Can I add more stocks to an existing MTF position?<\/strong><\/h3>\n
          \n\n

          Yes. You can make additional MTF purchases for the same stock or different stocks as long as you maintain the required margin levels.<\/p>\n\n<\/div>\n<\/div>\n

          \n

          Q4. What if I do not have enough cash to pay the interest?<\/strong><\/h3>\n
          \n\n

          Lemonn deducts interest from your available cash balance. If your cash balance is insufficient, it may trigger a margin shortfall. Always maintain adequate cash buffer.<\/p>\n\n<\/div>\n<\/div>\n

          \n

          Q5. Will I receive dividends on MTF shares?<\/strong><\/h3>\n
          \n\n

          Yes. Since the shares are held in your demat account (in pledged form), you continue to receive all dividends, bonuses, and corporate actions as the beneficial owner.<\/p>\n\n<\/div>\n<\/div>\n

          \n

          Q6. How do I check my outstanding MTF position and interest?<\/strong><\/h3>\n
          \n\n

          In the Lemonn app, go to Portfolio > MTF Holdings. You will see the outstanding borrowed amount, daily interest accrual, current margin ratio, and total interest paid so far.<\/p>\n\n<\/div>\n<\/div>\n<\/div>\n<\/div>","protected":false},"excerpt":{"rendered":"

          Margin Trading Facility (MTF) on Lemonn lets you buy up to 4x more stocks than your available capital. This step-by-step guide walks you through everything – from prerequisites to placing your first MTF order, calculating your interest costs, and closing your position. By the end of this guide, you will be confident enough to use […]<\/p>\n","protected":false},"author":3,"featured_media":11303,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_ayudawp_aiss_exclude":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-11334","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-finance"],"blocksy_meta":[],"_links":{"self":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/posts\/11334","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/comments?post=11334"}],"version-history":[{"count":1,"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/posts\/11334\/revisions"}],"predecessor-version":[{"id":11335,"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/posts\/11334\/revisions\/11335"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/media\/11303"}],"wp:attachment":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/media?parent=11334"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/categories?post=11334"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/tags?post=11334"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}