Hello Traders & Investors,
At Dhan, we have always focused on giving traders more control and flexibility through innovative order types and trading products. Over time, we’ve introduced features like Super Orders, Iceberg Orders & Basket Orders to help you execute your orders, and your investing & trading strategies more efficiently and manage positions better.
Even when it comes to leverage, Dhan introduced MTF or Pay Later (via Margin Trading Facility) across 1,700+ scrips.
In our observations on how traders adopt these capabilities, we noticed an important gap and an opportunity to introduce a new order type.
While MTF works well for many stocks, there are still several stocks where MTF is not available due to internal risk or regulatory considerations or because they are not part of the MTF approved list of securities. This makes it difficult for traders who want to take short-term opportunities in these stocks without immediately committing full capital. To address this, we are introducing a new product on Dhan:
Introducing T+5 Order
This order type is designed to help you take short-term positions in select stocks even when you have limited funds. With T+5, you can buy eligible stocks and hold them for up to 5 trading days. If funds are not added by the 5th trading day, the position will be automatically sold.
How will it work?
- Select a T+5 eligible stock and place a buy order using the Pay Later (T+5) option.
- The order will reflect in your Orders & Positions as a T+5 trade.
- Till T+1, the shares will appear under the Pay Later tab with a T+5 tag.
- From T+2 onwards:
- If your account is in debit, the shares will continue under the Pay Later tab
- If not, they will move to your regular portfolio (delivery holdings)
- You can hold the position for up to 5 trading days.
- You can sell anytime before Day 5:
- Till T+1 → sell from the Pay Later tab
- From T+2 onwards → sell from the Investing (Delivery) tab
Important things to know before your first T+5 trade:
- T+5 applies only when your account is in debit. If sufficient funds are available, shares are treated as regular delivery buy.
- Interest will apply on the debit amount at 0.0438% per day.
- Brokerage of ₹20 or 0.03% (whichever is lower) will be charged per executed order.
- Shares bought in delivery but automatically marked for pledge against the Client Unpaid Securities Pool Account (CUSPA) will also move under the T+5 tab and follow the same rules.
- You can add funds anytime to convert your T+5 position to delivery.
- Positions will be auto-sold on the 5th trading day if not converted.
- Incase you have some existing shares in CUSPA due to a previous debit and then you also end up buying something from the T+5 tab, liquidation of shares on the 5th day will happen on a FIFO basis always.
Note: Scripts on which MTF is available, are not eligible for T+5 Orders.
With T+5, we aim to extend flexibility to more stocks while maintaining responsible risk management. As always, we look forward to hearing your thoughts and feedback from the community.
T+5 is one of several recent MTF launches we’ve shipped to make leveraged trading more flexible. If T+5 gives you the holding window you needed, a few related launches that might also be useful:
- MTF Now from as Low as 12.49% p.a — MTF interest rates on Dhan now start from 12.49% per annum, among the lowest in the industry. Makes leveraged positions meaningfully more affordable to hold over longer windows.
- MTF Interest Rates Capped at 15.49% — even at the higher end, MTF interest rates on Dhan are now capped at 15.49% across the board. Removes the uncertainty of variable rates climbing on you while a position is still open.
- MTF Limit Increased to ₹5 Cr — your MTF limit per client now goes up to ₹5 crore. Useful if you’re scaling beyond the earlier ceiling and want to keep more positions under leverage without splitting across accounts.
- MTF Market Insights on ScanX — monthly MTF rental trends, top stocks, and positioning data, surfaced inside ScanX Insights. A view that started from community conversations on MFT and now ships every month.
- Pledge Shares for Margin Benefit — pledge your existing holdings to unlock additional margin for trading. The cleanest way to put long-term holdings to work without selling them down.
- Margin Limits Enhanced for Pledged ETFs — ETFs you’ve already pledged now earn higher margin limits than before. Particularly useful if a chunk of your portfolio sits in index or sector ETFs.
- In-line Margin & Leverage Calculator — calculate the margin and leverage required for any trade, right inline as you place it. Stops the back-and-forth of opening a separate calculator just to size a position.
- Convert Positions Between MTF, Intraday and Delivery — switch your open positions between MTF, intraday and delivery in a single tap. Lets a trade evolve naturally with the market rather than forcing you to close and re-open.
- MTF APIs on DhanHQ — execute MTF orders programmatically through DhanHQ APIs. For traders running automated strategies that need leverage built into the execution layer.
Thanks,
Pranita