MTF Explained for Beginners | Ultimate Guide, 10+ FAQs & Major Risks Explained

In this video, I explain Margin Trading Facility (MTF) in a clear and practical way. mtf explained, scp mtf explained, explained the scp mtf, mtf charts explained, mtf explained malayalam, mtf weapons explained, mtf loadout explained, mtf trading explained, explained, swing trading explained, margin trading explained, scp mobile task force explained, margin interest rate explained, margin trading facility explained, most feared mtf, mtf, mtf trading, mtf meaning can multiply profits but also magnify losses, so understanding how it works is extremely important before using it in the stock market.

I start by explaining what is MTF and what is MTF trading, followed by a step-by-step breakdown of how MTF works. This video is a complete margin trading explained guide for Indian traders, covering margin trading how it works in India with real-life examples.

I also explain MTF margin call, margin call explained, and what happens when stock prices fall against your position. You will clearly understand how MTF interest charges, interest rate, and holding period impact your profit or loss using a practical MTF calculator example.

https://dhan.co/calculators/mtf-calcu...


In this video, I cover:

⦁ How margin trading facility works in the stock market
⦁ MTF trading risks most traders ignore
⦁ MTF interest charges and broker costs
⦁ Margin calls and forced selling
⦁ Why MTF is only suitable for short-term swing traders
⦁ Common mistakes in margin trading India

MTF – Frequently Asked Questions

FAQ 1 – Is MTF interest charged on weekends and holidays?
⦁ Yes. Interest is charged for all calendar days, even when the market is closed.

FAQ 2 – Does MTF affect my CIBIL score?
⦁ No. MTF has no impact on your CIBIL score.

FAQ 3 – What is haircut in MTF?
⦁ Haircut means reduced value of pledged shares.
Example: ₹1,00,000 shares with 20% haircut = ₹80,000 usable value.

FAQ 4 – Can haircut change suddenly?
⦁ Yes. If a stock becomes volatile, brokers can increase haircut anytime.

FAQ 5 – Can my broker square off my MTF position without notice?
⦁Yes. During high volatility or margin shortfall, brokers can force sell.

FAQ 6 – Can I lose more than my capital in MTF?
⦁ No. Your maximum loss is limited to your invested capital.

FAQ 7 – Is MTF safer than Futures & Options?
⦁ Yes, comparatively. MTF has circuit limits, while FnO losses can exceed capital.

FAQ 8 – How is tax calculated on MTF trades?
⦁ MTF trades are taxed like normal equity trades:

Less than 1 year → Short Term Capital Gain (STCG)

FAQ 9 – Can MTF be used for intraday trading?
⦁ No. MTF is meant for delivery-based trades only.

FAQ 10 – Who should use MTF?
⦁ Only experienced short-term swing traders with strict stop-loss discipline.

⏱️ Timestamps

00:00 – Intro
01:14 – What is MTF?
02:23 – How MTF Works - Step by Step
03:52 – Eligible share under MTF
05:16 – Interest Rates & Other Charges
07:19 – Margin Call Mechanism
09:05 – MTF Calculator
12:06 – MTF is only for Expert Swing traders only
14:08 – 10 Most FAQs

⚠️ Disclaimer

Rohit Tripathi is registered with SEBI as an Individual Research Analyst vide Registration number INH000022543 dated August 6, 2025, and provides Research Analyst services to clients. The content shared is purely for knowledge and educational purposes and should not be treated as investment advice or buy/sell recommendation of any kind.

Neither Rohit Tripathi nor any associated entities shall be held liable for losses incurred by viewers acting upon this content. Investments in securities are subject to market risks. Viewers are advised to read all related documents carefully before investing.

Registration granted by SEBI and certification from NISM do not guarantee performance or assure returns. The securities discussed are only for illustration purposes and are not recommendatory.

🔵 Join YouTube Community Membership

   / @retirewithrohit  

🌐 Website

https://retirewithrohit.com/

📱 Connect on Social Media

Instagram –   / retirewithrohit  

Snapchat –   / retirewithrohit  

🎬 Resource Credits

Canva Pro, Envato Elements, PixaBay, PixaHive
Research Tools – Screener, TickerTape, Groww, Google Finance, Google News
AI Images – ChatGPT Plus, Gemini Pro, Envato

Video Edited by PixaHive Studios
Contact: 8284056576 (WhatsApp)
🔗 Link – https://wa.me/?phone=918284056576&tex...

-

#MTF #MarginTrading #StockMarketIndia