1. What is Upstox MTF?

Margin Trading Facility (MTF) allows traders to borrow funds from Upstox to purchase securities. It enables leveraging your trading positions beyond your available capital.

2. How Does the Calculator Work?

The calculator uses the MTF charges formula:

Where:

• \( Loan\ Amount \) — The amount borrowed for margin trading (INR)
• \( Rate \) — Daily interest rate of 0.05% (0.0005)
• \( Days \) — Number of days the loan is held
• \( Brokerage \) — Additional brokerage charges (INR)

Explanation: The calculator computes daily interest charges on the borrowed amount and adds any applicable brokerage fees to give you the total MTF charges.

3. Understanding MTF Charges

Details: MTF charges include interest on the borrowed amount calculated daily and standard brokerage fees. Understanding these charges is crucial for effective margin trading and risk management.

4. Using the Calculator

Tips: Enter the loan amount in INR, number of days you plan to hold the position, and any brokerage charges. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is the daily interest rate for Upstox MTF?
A: Upstox typically charges 0.05% per day on the borrowed amount for MTF facilities.

Q2: Are there any hidden charges in MTF?
A: Besides the daily interest, standard brokerage, transaction charges, GST, and STT may apply depending on the trade.

Q3: Can I use MTF for intraday trading?
A: Yes, MTF can be used for intraday trading, but interest is charged for the days the position is held overnight.

Q4: What happens if I don't repay MTF on time?
A: Delayed repayment may lead to additional penalties and forced square-off of positions by the broker.

Q5: Is MTF available for all stocks?
A: No, MTF is available only for selected stocks that are part of the margin trading facility list provided by Upstox.