{"id":5223,"date":"2024-12-27T08:53:18","date_gmt":"2024-12-27T08:53:18","guid":{"rendered":"https:\/\/lemonn.co.in\/blog\/?p=5223"},"modified":"2025-10-31T07:50:55","modified_gmt":"2025-10-31T07:50:55","slug":"margin-trading-facility-is-now-live-on-lemonn","status":"publish","type":"post","link":"https:\/\/lemonn.co.in\/blog\/stocks\/margin-trading-facility-is-now-live-on-lemonn\/","title":{"rendered":"Margin Trading Facility is now live on Lemonn!"},"content":{"rendered":"
\"Margin<\/figure>\n\n\n

What is MTF?<\/strong><\/h2>\n\n\n\n

MTF allows you to buy more stocks than your current balance allows by letting you borrow up to 80% of the stock\u2019s value. You\u2019ll pay a small daily interest of 0.03%<\/strong> (that\u2019s \u20b930 for every \u20b91 lakh borrowed per day).<\/p>\n\n\n\n

Lemonn\u2019s MTF charges are super competitive (10.95% P.A.) – lowest in the market!<\/p>\n\n\n\n

How to Activate MTF<\/strong><\/h4>\n\n\n\n
\"Screens<\/figure>\n\n\n\n

Activating MTF is quick and easy:<\/strong><\/p>\n\n\n\n

    \n
  1. Go to the home page and click the \u201cActivate MTF\u201d button.<\/li>\n\n\n\n
  2. Once requested, it takes about a day to activate.<\/li>\n<\/ol>\n\n\n\n

    You can also activate it directly while viewing a specific stock by selecting \u201cActivate MTF Now.\u201d<\/p>\n\n\n\n

    \"A<\/figure>\n\n\n\n

    How to Use MTF<\/strong><\/h4>\n\n\n\n

    Once enabled, using MTF is simple:<\/p>\n\n\n\n

    \"A<\/figure>\n\n\n\n
      \n
    1. Place an order like usual but choose the MTF option in the order window.<\/li>\n\n\n\n
    2. You can hold your MTF position for as long as you like.<\/li>\n<\/ol>\n\n\n\n

      Important:<\/strong>
      After placing an MTF order, you\u2019ll get a pledge request email at 4:30 PM<\/strong>. Accept it by 7:00 PM<\/strong> the same day.<\/p>\n\n\n\n

      Why Use MTF?<\/strong><\/h2>\n\n\n\n

      1. More Buying Power, Bigger Gains<\/strong><\/p>\n\n\n\n

      With MTF, you can invest more than what you currently have. For example, putting \u20b920,000 and borrowing \u20b980,000 allows you to invest \u20b91,00,000. If the stock price goes up, your profits are based on \u20b91,00,000, not just \u20b920,000, giving you higher returns.<\/p>\n\n\n\n

      2. Be Careful with Risks<\/strong><\/p>\n\n\n\n

      Leverage multiplies both profits and losses. If your stock loses value, losses will also be bigger, so it\u2019s important to manage risks.<\/p>\n\n\n\n

      Things to Know<\/strong><\/h4>\n\n\n\n

      1. Daily Costs<\/strong><\/p>\n\n\n\n

      Every day you hold a leveraged position, you\u2019ll pay 0.0273% daily interest<\/strong>. Holding for too long can eat into your profits.<\/p>\n\n\n\n

      2. Adding Margin<\/strong><\/p>\n\n\n\n

      If stock prices drop, you might need to add extra funds or sell the stock to avoid losses.<\/p>\n\n\n\n

      3. Why Lemonn Charges Interest<\/strong><\/p>\n\n\n\n

      The interest helps cover the cost of funds Lemonn provides for leverage trading.<\/p>\n\n\n\n

      4. Other Charges<\/strong><\/p>\n\n\n\n

        \n
      • Brokerage:<\/strong> \u20b920\/- per executed order<\/strong> (SEBI prescribed brokerage limit will not be exceeded).<\/li>\n\n\n\n
      • Pledge Charges\/Unpleged Charges:<\/strong> \u20b920\/-<\/strong>.<\/li>\n\n\n\n
      • Margin<\/strong> Pledge<\/strong>\/Unpleged:<\/strong> \u20b920\/-<\/strong>.<\/li>\n<\/ul>\n\n\n\n

        MTF is a great tool for boosting your buying power and aiming for higher profits\u2014but always remember to use it wisely!<\/p>\n\n\n\n

        Is MTF Risky?<\/strong><\/h2>\n\n\n\n

        The thumbrule in investing is higher the risk, higher the return. In MTF trades, you get to own stocks without having to fund it yourself completely. What\u2019s more, as you are buying more shares, you stand to make higher profits if the stock price goes up. That said, leveraged trade is riskier than equity delivery trades. In MTF, there is a cost involved as you have to pay interest on each day you continue to hold the stock. Also, if the price of the stock falls, you will have to cough up additional margin money to remain in the MTF trade.       <\/p>\n\n\n\n

        Advantages of MTF <\/strong><\/p>\n\n\n\n

        Increased buying power<\/strong>: MTF allows you to buy more stocks than than you could with just your own funds.<\/p>\n\n\n\n

        Potential for higher returns<\/strong>: As you are buying more shares, if the stock price goes up, you stand to make higher profits.<\/p>\n\n\n\n

        Risks of MTF<\/strong><\/p>\n\n\n\n

        Losses are magnified<\/strong>: If the stock price goes down, your losses are also bigger as you are using borrowed money.<\/p>\n\n\n\n

        Margin calls<\/strong>: If your stock value drops significantly, you may be asked to add more money to your account, failing which the broker can sell your stocks to recover the loan amount.<\/p>\n\n\n\n

        Conclusion<\/strong><\/h2>\n\n\n\n

        Leveraged trading is risky, but potential rewards can often outweigh risks. We have provided you the lowdown on margin trading, complete with its pros and cons. Consider your risk appetite and take an informed trading decision. <\/p>\n","protected":false},"excerpt":{"rendered":"

        What is MTF? MTF allows you to buy more stocks than your current balance allows by letting you borrow up to 80% of the stock\u2019s value. You\u2019ll pay a small daily interest of 0.03% (that\u2019s \u20b930 for every \u20b91 lakh borrowed per day). Lemonn\u2019s MTF charges are super competitive (10.95% P.A.) – lowest in the […]<\/p>\n","protected":false},"author":3,"featured_media":5231,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_ayudawp_aiss_exclude":false,"footnotes":""},"categories":[3],"tags":[],"class_list":["post-5223","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-stocks"],"blocksy_meta":[],"_links":{"self":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/posts\/5223","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=5223"}],"version-history":[{"count":7,"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/posts\/5223\/revisions"}],"predecessor-version":[{"id":9000,"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/posts\/5223\/revisions\/9000"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/media\/5231"}],"wp:attachment":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/media?parent=5223"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/categories?post=5223"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/tags?post=5223"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}