Introducing Margin Trading Facility (MTF) on Dhan: Now Trade with Less ๐Ÿ’ฐ

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 โ€œXโ€ @ 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 โ€œXโ€ 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

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

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

Hey @encore ,

Request you to please DM us your details or send an email to help@dhan.co marking me in cc . My email ID is pranita.joshi@dhan.co. We will check and revert.

Thanks,
Pranita
Product @ Dhan

@Pranita the issue seems to have resolved itself after 1 day of holding them in my demat. Hope it doesnโ€™t repeat. :slight_smile:

Thank you for your support.

Hey @The_Waker ,

Happy to share that Forever orders with OCO are now available for MTF & Equity. Read more here - Now Live: Forever Orders with OCO (for MTF & Equity)

@Pranita I want to convert my MTF holdings to Delivery. I clicked the button to do so in the app but there is no ETA shown, not any confirmation was intimated. How much time it takes?

Hey @encore ,

MTF Positions will be converted to Delivery by the next day post all necessary checks by our RMS. There is a message conveying this on the app as well.

Thanks,
Pranita

I face issue during pledge my MTF shares in DHAN. So i could not pledge the shares before 9PM. What will happen now on next day?

Hey @bdeepan6 ,

If your pledge was unsuccessful, the shares will get converted to delivery and get sold within 5 days incase of insufficient margins. What was the issue that you faced while pledging ?

Thanks,
Pranita

Thanks for your support,
First time I recieved OTP, when entered and submit, but page didnโ€™t move to the next steps.

Again after few minutes do authentication through dhan page, there is no response. CDSL page didnโ€™t loaded. I repeated the same step again and again,but failed.

Hello @PravinJ & @Pranita You advertised BTST transactions As MTF is interest-free, Iโ€™ll always do BTST, but I also get charged for it. Would you please provide your opinion on this?

Hi @Ravi.t when MTF was introduced - Settlement time was T+2, and now it is T+1. MTF on Dhan was interest free till settlement, think it is same even now. We do not charge for the first day, moving ahead when the settlement cycle is same day - this benefit will go.

Do check the narration for the entry, it mentions Interest from 1 Sept to 7 Sept.

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Understood, thanks @PravinJ for enlightening me.

Does dhan charge any interest on 50:50 split of cash equivalent margin and collateral margin that is used in fno segment and for mtf ?

Hey @Sarthakk9 ,

For intraday equity or option buying, there is no requirement of 50-50 margins. However in case of intraday futures or option selling & CNC trades, 50-50 margins will be required. Interest will be charged if these margins are not maintained.

Thanks,
Pranita
Product @ Dhan

what is your reason to cap 35 lakhs for mtf? other are giving more tan 1 cr. any specific reason for that? because as the ease of using the platform i dont want to move to other broker but your actions sometimes force me to do this.

Hey @Saurabh88 ,

This is as per our risk policies to avoid single client concentration. You could use any other family accounts if you would like to place MTF trades worth higher amounts.

Thanks,
Pranita
Product @ Dhan

Hi,

Request you to please keep a tab on the community, we will be communicating about our MFs soon.

Hi can i directly buy stocks in MTF using TradingView Charts?