Enhance your buying power by up to 4x
*Investments in the securities market are subject to market risks. Read all the documents carefully before investing.
Why trade with MTF on ICICI Direct?
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Choose the right plan for you and save on MTF interest costs
MTF Interest Rates
(Per Annum)
MTF Interest Rates
(Per Day)
A charge of ₹25 + GST applies per pledge/unpledge transaction.
Things to remember during MTF
- Assess Risk
Leverage amplifies both profits and losses. Get a clear understanding of the risks involved. - Monitor Positions
Track MTF positions regularly to stay aligned with margin requirements. - Mind the Timeline
MTF positions can be held for up to 360 days. Plan your trades accordingly.
View your current positions under Open Positions:
- For the same day, positions will appear under Intraday.
- from T+1 day, positions will appear in MTF.
How can I invest in MTF without cash?
Step 1:
Visit Shares as Margin
Go to Stocks → Funds → Shares as Margin
Step 2:
Select Stocks
Enter the quantity of the stocks you want to pledge.
Step 3:
Choose Equity Segment
To create limits, select the equity segment, enter the OTP, and submit.
Step 4:
Generate Limits & Place MTF Orders
Trading limits are created instantly and visible under Securities Allocation.
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MTF (Margin Trading Facility) helps you buy stocks by paying only a part of the total value, known as the initial margin. The remaining amount is funded by ICICI Direct.
Points to note:
MTF holdings are valid for up to 360 days
You can sell/square off your MTF holdings or convert them to delivery (CTD)
Interest is charged on the funded amount as per your selected brokerage plan
The initial margin can be provided through cash or collateral/pledged shares (under the Shares as Margin feature of ICICI Direct)
MTF (Margin Trading Facility) helps you buy stocks by paying only a part of the total value, known as the initial margin. The remaining amount is funded by ICICI Direct.
Points to note:
- MTF holdings are valid for up to 360 days
- You can sell/square off your MTF holdings or convert them to delivery (CTD)
- Interest is charged on the funded amount as per your selected brokerage plan
- The initial margin can be provided through cash or collateral/pledged shares (under the Shares as Margin feature of ICICI Direct)
Let’s assume you find an investment or trading opportunity worth ₹4,00,000, but you have only ₹1,00,000 available in your bank account. Normally, you wouldn’t be able to take this position.
However, with MTF offering up to 4× leverage (subject to stock eligibility), you can take the position.
Illustration
Your margin contribution: ₹1,00,000
Amount funded by ICICI Direct: ₹3,00,000
The funded amount attracts interest, starting as low as 9.65% per annum, depending on your brokerage plan. This position can be held for up to 360 days.
Interest under MTF is charged on the funded amount for the number of days the position is held. At ICICI Direct, the interest rate goes as low as 9.65% p.a., depending on your brokerage plan. Interest calculation begins from the exchange pay-in date (T+1 day) and continues until the T+1 day of settlement after the position is squared off.
Interest is calculated on a daily basis, including weekends and non-working days.
Example: If you buy shares worth ₹4,00,000 using ₹1,00,000 of your own funds, ICICI Direct funds the remaining ₹3,00,000.
Daily interest = (Funded amount × Applicable rate) ÷ 365
= ₹3,00,000 × 9.65% ÷ 365 ≈ ₹81.05 per day
If you hold the position for 10 days, total interest = ₹81.05 × 10 = ₹810.50 approximately
You can use the MTF Calculator to estimate charges in advance.
* Interest rate depends on your brokerage plan
*Please note Brokerage would not exceed the SEBI prescribed limit.