MTF interest information

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Hi team ,

I’m trying the MTF (Margin Trading Facility) feature for the first time and wanted to clarify a few things based on a real trade I executed:

:1234: Trade Details:
Bought 10 quantity at ₹8578 on 29th May using MTF

Bought another 5 quantity at ₹8806 today, also using MTF

Now I have a total of 15 MTF shares, and I’m trying to understand the following:

:question: Key Questions:
How is the average price calculated for MTF holdings across different dates?

Will it be simple weighted average or treated separately by date?

How will the interest be calculated?

Is it charged separately for each batch (based on purchase date)?

Will I be charged interest from 29th May on the first 10 shares and from today on the new 5?

If I sell 5 shares tomorrow, which lot will be considered for exit?

Will it follow FIFO (first-in, first-out) or something else?

Are there any differences in how pledging/margin release works when averaging MTF shares on different days?

Will I receive a single MTF interest statement or separate entries for each lot/date?

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Hey @hustler

The average price is calculated on a FIFO (First-In, First-Out) basis, using the formula:Total Trade Value ÷ Total Quantity.

Interest on MTF is charged based on the duration for which the shares are held (i.e., the net funded value).
For example:

  • If you buy 10 shares on 2nd June 2025, interest will be charged for those 10 shares starting from Tuesday.
  • If you then buy another 5 shares on 3rd June 2025, interest will be calculated for next day onward, and so on.

Whenever you sell your Delivery or MTF holdings, the P&L is also calculated on a FIFO basis.

If you buy shares using MTF on a daily basis, there are no changes in the process. In case of margin requirement, it gets adjusted accordingly.

You’ll receive a MTF margin report on your registered email ID. Additionally, MTF interest entries are posted to your ledger on a weekly basis.

For more details, you can read our RMS Policy related to MTF here:
:link: Risk Management Policy | Dhan

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