Margin Funding
What is Margin Funding (MTF)?
Margin Trading Facility (MTF) allows you to buy stocks by paying only a portion of their price (margin), while the remaining amount is funded by ICICI Securities. This enables you to take larger positions with limited capital.
- You can hold MTF stocks for up to 360 days.
- Interest is charged only on the funded amount (the portion financed by ICICI Securities).
Example:
Let's say you want to buy ₹1,00,000 worth of shares under MTF:
- You pay 30% margin = ₹30,000
- ICICI Direct funds 70% = ₹70,000
- Interest is charged on ₹70,000 until you close the position.