Introducing Margin Trading Facility (MTF) on Dhan: Now Trade with Less 💰

Product Announcements 🔈
24

Hi @The_Waker,

Bracket Order is an Intraday Product and MTF is different product (not allowed in Intraday).

But we understand your point, you want to place a Target and Stop Loss as OCO over an MTF position with long validity. Feedback noted, we will try to incorporate this.

25

Thanks for your prompt reply @Poornima.
In the meanwhile, any tips on how to monitor the pre-defined stoploss and target levels.

26

Hi @The_Waker,

For now, you may use Price Alerts to know if the stock is nearing your desired target or stop-loss.

We have recently gone live with DDPI, and are working on Forever Order for Equity as well.

27

yes when this facility will be on screen, If I want to convert MTF to Delivery cash,

28

Hey @shashikumar ,

This is in the works. Please allow us some time to implement it. Until then request you to please follow the route as mentioned above to convert your MTF positions to delivery.

Thanks,
Pranita
Product @ Dhan

29

Hi, i have ETFs pledged under dhan, and already got margin against that, can i use that margin to buy stocks in MTF and hold them.

30

Hi @kkbatra

Yes, you can use collateral margin, to buy an MTF stock.

31

does Dhan charge interest on collateral margin also?

32

Hey @kkbatra,

Yes, we do charge an interest of 0.0438% per day on collateral margin.

Thanks,
Pranita
Product @ Dhan

33

do i need to pay interest on unused ideal collateral margin also ?

34

Hi @kkbatra

The interest is applicable only in the used margin only.

35

Another option is to set AMO order on daily basis if you have 5-6 holding. Also you can repeat the order once cancelled so it’s fairly quick. AMO works just fine, when market opens or after 30 min or so. I am using this way as I not regulary watching the market.

36

In icici direct is 8.99% and kotaak 10% - never gobeyond this intrest like 15 to 18 % are very high

Dhan is not good in MTF
I am using ICICI direct for MTF its good

2 Likes
39

Hey @riyas2831 ,

We have addressed your concern here and would love for you to experience MTF on Dhan for the product that it is.

40

Hello everyone @Pranita

I have a few questions(sorry if it feels rudimentary, I just want to be sure):

  1. For stocks which don’t have 4x leverage(2x, 2.5x etc), does the condition for liquidation still remain the same(Holding coverage <20 pct)?

  2. Does calculation for holding coverage include collateral margin as well?
    i.e. if the holding coverage goes near 20 pct a few days after buying, can I post collateral margin(by pledging other stocks) to increase my holding coverage? Or should it be only cash?

  3. Is conversion of MTF to delivery in-app on your roadmap(I see on the forum that we have to email you for this currently)?

One question unrelated to MTF:
3. I’m looking to switch from Zerodha to Dhan. Will my mutual funds on Zerodha show up properly once mutual funds are live on Dhan? Will I be able to sell them?

Thanks in advance

41

Hello @EggMasonValue ,

Thank you for the questions. Always happy to clarify:

  1. Yes, the condition remains uniform across all stocks.
  2. Yes, calculation includes holding coverage as well . For calculating 20% coverage we include CUSA+ BTST+ MTF position + MTF BTST+ Pledge+ In transit Holding +Current value of stocks bought today as per LTP (free DP excluded). So you could pledge shares and increase holding coverage.
  3. Conversion from MTF to Delivery will be live soon.

For MF: Absolutely, mutual funds on Zerodha will show up properly. However in the first phase you will most likely have to sell it from Zerodha if required and not Dhan. Eventually you will surely have that option as well.

1 Like
42

Thank you for your prompt response!

43

Hey @Dhan @Pranita

Thanks for helping trading community. you are doing yeomen service to us.

I am a novice in using MTF. Pardon my ignorance.

So my query is lets say I have bought 200 shares of “X” @ 500 Rs = 1 lakh (Self funded 40 shares * 500 = 20K and 160 shares * 500 = 80K margin funded) , now after 30 days the share price of “X” has moved too 600 Rs , if i want to take delivery of the shares what will be the amount that i need to pay ?

  • 80K (Funded amount)+ interest of 30 days , or

  • 80K (Funded amount) + interest of 30 days + (600-500)*160

44

Hi @Sudhamsh ,

To answer your query- Stocks bought on MTF are not split quantity wise for funding. In the above example if you have bought 200 shares using MTF, 80k will be the funded amount of the total shares and not split by quantity. Incase you want to take delivery of the shares, you will need to pay the funded amount, so only 80k in this case. Interest will be calculated separately & deducted from ledger & is not necessarily required while converting the position.

Thanks,
Pranita
Product @ Dhan

1 Like
45

@Pranita I bought a stock via MTF yesterday, it was an ETF to be specific. Today, I can see that under my holdings → ETF section but when I click the MTF sub-section (within the ETF), it doesn’t show up. Please fix that as the ETF was bought using MTF feature.