What is MTF?
What is MTF?
Blog Article
mtf stocks are specific shares approved by SEBI and individual brokers that can be bought using MTF. These are generally:
Highly liquid
Large-cap or well-established mid-cap stocks
Included in Nifty 50 or Sensex
Common MTF-Eligible Stocks Include:
| Stock Name | Sector |
|---|---|
| Reliance Industries | Oil & Energy |
| HDFC Bank | Banking & Finance |
| Infosys | IT Services |
| Tata Motors | Auto |
| ICICI Bank | Banking & Finance |
(Note: The actual list may vary by broker.)
Key Benefits of MTF
Leverage: Trade more with less capital.
Profit Potential: Maximize gains in bullish markets.
Flexibility: Hold positions beyond the trading day.
Things to Consider
Interest Charges: Brokers charge daily interest on the funded amount.
Margin Calls: A drop in stock prices can require additional funds.
Eligibility Criteria: Only SEBI-approved MTF stocks can be traded under this facility.
Conclusion
MTF and MTF Stocks offer a smart way for investors to boost their trading capacity. However, since it involves leverage, it also increases risk. Traders should use MTF wisely with proper risk management and a clear repayment plan.
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