Let me take ur example forward.
Suppose the Leverage is 4x in SBI
Today SBI is trading at Rs. 100
I buy one stock of SBI
Obviously my investment is Rs. 25, n
and Dhan Rs.75
Bow suppose the stock tanks to say Rs.80
M2M loss is Rs.20.
You can block my funds towards the M2M proportionate to ur leverage that is Rs.15 so that you are 100% protected .
So tomorrow when I start, my account is lien marked for Rs.15 and rest of the funds are available for use.
Now obviously, in case of a MTF portfolio, you also take into account , the stocks that are positive and accordingly adjust the M2M requirement. This ways your risk is mitigated substantiallyā¦And you obviously have the option of auctioning the pledge shares in case i refuse to fund my account to the tune of M2M loss for the day
Now, this I donāt think a y serious trader/investor would mind
Started using Icici direct for mtf facility since dhan blocked it. The issue Iām facing with icici is that they lock in the full amount of purchase on the trade day and release the remaining amount the next day after pledging.
For example- i bought 40k (20k from my hand + 20k leverage) worth shares today. I canāt use my remaining 20k(40k was my total capital) because they lock that amount and unlocks it next day. I didnāt had this issue on Dhan.
Any other alternatives where there is no issue on this?
@GalaticX Great to hear I am looking at opening HDFC Sky so comparing which one to go from ICICI and this oneā¦ So need your expertise on this based on your experience. On HDFC Sky under MTF they put * with some condition apply not sure what is that one.
So we donāt need full amount to trade? Likeā¦ if I have 20k in my account I can buy for 40k worth shares with 2x leverage? But the customer care executive said I canāt do it while I addressed the issue to them
Hello everyone! Please suggest a better broker between icici direct and mstock which have more number of scripts under mtf and with no account opening charges. Thanks
Ridiculous!!
How I am still using MTF in ICICI & Mstock if Iāve blown my account??
The action from DHAN shows 99% of traders are NOOBs.
My account got activated just today & I am going to close it today itslef.
I feel little embarrassed being on this platform where the company & subscribers both are unprofessional & dont follow basic rule of market āBHAV IS BHAGWANā
MTF was the only reason why i migrated completely to Dhan from Zerodha and now i am being forced to look for other broker who can provide suuch facilities.
Dhan is a new business, they donāt have big pockets like established banks. They borrow money and pass that to us. They earn much less than other brokers by this way, so such things will happen and you will have to understand this before signing up.
Nothing comes for free, they are in a profit-making business after all. They understand their own risk better than us.
Iām not a full-time trader so Iām sticking with Dhan.
Hi Team Dhan, Global Geopolitical and election issues are too volatile. Isnāt that better to close Positional Derivative trading too ??? Very funny that, where the revenue or customers u are expecting are overwhelmed, U try to shut that door down and say to customers to look for somewhere else what u r offering, rather increasing the productivity or other growth issues. Trading or Stock market itself is volatile to cash-on. What else a trader or investor expect ??? To cash-on the volatility. Try to close the trading also and provide only investing which is super risk management with 0.00001% of customers u have from now. Welcoming ur decision.
