Margin Trading Facility News Today

In the realm of finance, the stock market stands as a dynamic arena, reflecting the pulse of the economy and the...

Once you explore the Bajaj Broking App, you will discover diverse investment opportunities, whether involved in the share market or otherwise.

Margin Trading Facility is a safe product allowing investors to purchase more stocks through leverage trading. It enables increased purchasing power, efficient capital allocation, higher ROI, and lower taxes for traders. MTF improves the possibility of profits as well as empowers traders to capitalize on promising market opportunities without having to liquidate their current holdings.

According to SEBI reports, both exchanges, the Bombay Stock Exchanges and the National Stock Exchanges, will open for a special trading session on May 18, 2024. The purpose of the special live trading session is to assess the exchanges' preparedness for disasters. in the event of any significant disruptions. The session will be at 9:15 to 10 and next session will be held at 11:30 to 12:30

Brokers borrowing costs from NBFCs for margin funding have surged to 10-11% from 8-8.50% earlier. Industry officials ET spoke to attributed the decision to increase loan rates to brokers to two reasons. One is that the Reserve Bank of India nudged NBFCs to do so amid concerns about elevated leverage in the stock market.

Nilesh Sharma Executive Director President of Samco Securities explains the surge in margin trade funding can be primarily attributed to the remarkable performance of the market particularly in mid and smallcap stocks enticing more retail investors to participate in margin trading.

In the first week of February, clients of these brokers must pay as much as 100% upfront margin for all new positions within the margin trading facility (MTF) in the cash segment in an attempt to discourage traders from taking excessive risks in the event of sharp swings.

The pay later feature also provides an unlimited holding period, the ability for users to use their shares and ETFs as collateral instead of cash for their positions and get MTF research recommendations

Kotak Securities introduces Trade Free Pro plan, catering to equity traders and offering Pay Later (Margin Trading Facility) at a competitive rate of only 9.75% per annum.

The Bengaluru-based firm has seen its revenue in FY23 revenue cross Rs 200 crore and it plans to onboard 1 million users by 2024. It is also entering the portfolio management service business.