MTF Calculator

Margin Trading Facility (MTF) on Lemonn allows you to buy stocks by paying only a fraction of the total value, while Lemonn funds the remaining amount. With features like up to 4x leverage and competitive interest rates, MTF helps investors increase their buying power and capture market opportunities.

An MTF Calculator helps you estimate your total investment capacity, borrowed amount, and interest cost before placing a trade. It is useful for planning leveraged trades and managing risk effectively.

What is an MTF Calculator?

An MTF Calculator is an online tool that calculates how much you can invest using margin funding on platforms like Lemonn. It shows your own investment, the broker-funded amount, and the interest payable over time.

It is especially helpful for active traders who want to understand the true cost and exposure of margin trading.

MTF Calculation Formula

MTF calculations are based on leverage and funding:

These formulas help estimate your total exposure and cost of borrowing.

How to Calculate MTF Investment

To calculate your margin trade:

• Enter your available capital
• Apply leverage (e.g., up to 4x on Lemonn)
• Calculate total buying power
• Determine the borrowed amount
• Estimate interest based on holding duration

For example, with 4x leverage, you can take positions up to four times your capital.

Example of MTF Calculation

Suppose you invest ₹50,000 using Lemonn MTF with 4x leverage:

• Own Capital = ₹50,000
• Total Investment = ₹2,00,000
• Borrowed Amount = ₹1,50,000

If interest rate is 10% annually and you hold for 30 days:

• Interest ≈ ₹1,233

Benefits of MTF Calculator

• Helps estimate total buying power instantly
• Calculates interest cost before trading
• Supports better risk management
• Useful for planning leveraged positions
• Saves time compared to manual calculations
• Helps compare different trading strategies

How Does MTF Work on Lemonn?

On Lemonn, you can trade stocks by paying only a part of the total value, while the platform funds the rest. The purchased shares are held as collateral until repayment.

• Offers up to 4x leverage on eligible stocks
• Interest is charged on the funded amount
• You can pledge holdings to unlock additional capital

Key Elements of MTF

Several factors influence your MTF calculations:

• Available capital
• Leverage (up to 4x)
• Interest rate (10.95% p.a.)
• Holding period
• Stock eligibility
• Margin requirements

These factors determine your final investment capacity and cost.

Why Use an MTF Calculator?

An MTF calculator helps simplify complex margin calculations. It allows traders to clearly understand:

• How much they can invest
• The cost of borrowing
• Whether a trade is profitable after interest

It is essential for avoiding over-leverage and making informed trading decisions.

Risks of Margin Trading

While MTF increases buying power, it also comes with risks:

• Losses are amplified with leverage
• Interest cost reduces net returns
• Margin calls if stock prices fall
• Forced liquidation if margin is not maintained

Understanding these risks is crucial before using MTF.

Example Scenarios

Scenario 1

• Capital: ₹1,00,000
• Leverage: 4x
• Total Investment: ₹4,00,000

Scenario 2

• Capital: ₹2,50,000
• Leverage: 3x
• Total Investment: ₹7,50,000

Higher leverage increases both potential returns and risk.