Markets, Opportunities, and MTF!

Hi all,

Markets. Opportunities. Funds.

These three things are pretty much what a trader thinks about.

The experienced and knowledgeable ones know that markets can’t be controlled or predicted and opportunities can come at any time.

Funds, however, are something a trader has control over.

Opportunities and markets have aligned but what if you didn’t have to block all your funds for it?

Well, you can still bank on opportunities. Margin Trading Facility (MTF) on Dhan is already making this possible.

What MTF Does for You:

Up to 4X Leverage – Choose from 1000+ stocks with Margin Funding.

Hold Stocks as Long as You Want – No time restrictions, just maintain required margins.

Easy Management – Separate portfolio tagging, quick and real-time pledging (4-9 PM).

Convert MTF Order Type - Switch an existing MTF position to Delivery or Intraday, and change an existing Delivery or Intraday position to MTF fully or partially.

But wait…what if we told you something even better is on the way? :eyes:

Any guesses? Drop them below! :arrow_down:

5 Likes

Well, I could guess, Loan Against Securities and Pledge on MFs?

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Interest rates reduced @thisisbanerjee

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@t7support Yeh lo ghee :honey_pot: shakkar :candy:

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The broking industry in India has undergone a significant transformation with the introduction of flat-rate discounted broking. The old brokerage system was pretty confusing, and many believed that percentage-based brokerage was just a way to trap unsuspecting clients.

Now, there’s a lot of buzz about the MTF feature, and brokers are eager to jump on this change.

However, for many retail investors, participating may be tough unless the interest charges for MTF are made clearer. It’s not that brokers are trying to overcharge; it’s just that the calculations can be really complicated, even for someone who is fairly savvy.

There is still a need for the Stock Broking Industry in India to make the fees related to MTF easier to understand, and it will be interesting to find out who will take the initiative to address this issue.

The trophy is ready to be claimed, we need to just need to wait until someone’s brains liberates the complexity associated with MTF charges, fees, Interest etc.

Too much generalization in the statement. MTF fees in brokerages like Dhan, AngelOne, Zerodha are pretty straightforward. Which fees are you specifically talking about? Also, which are the brokerages that you are basing your statement on?

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I know it seems simple for you since you understand how it all functions. However, take a look at the comments on this video.

The comments clearly show that many people are confused or not happy with the product as it is ( negotiating for lower interest rates etc.)

I’m not saying that brokers are deceiving their clients. What I’m trying to say is that the idea behind interest rate calculations, T days, automatic square off, and all those details makes the MTF a hard product to grasp.

The idea really needs to be made easier to understand. Until someone smart takes action, people will believe this is fine as it is.

2+2 = 4. People who won’t understand this, would say oh it’s too complex. That doesn’t make this sum difficult.

Lower interest rates are one thing and people understanding is different. I believe instead of the MTF interest calculations, people are simply too lazy to do that or stupid.

Asking for other variations such as lower interest or offers is subjective and I’m not commenting on that but the unwillingness or the lack of understanding of the product makes them stupid.

As to Dhan, interest is changed from the next day of buy at an annual interest rate of 16% + ₹20 brokerage buy/sell + DP charges. Simple and easy.

1 Like

It takes someone with grey matter to simplify the product’s complexity into a manageable version, until then people will continue to think it’s perfectly fine the way it is.

Only time will tell us who that person will be and what the product will look like.