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Margin Trading Facility (MTF) and Margins

Margin Trading Facility (MTF)
  1. FAQs for Margin Trading Facility (MTF)
  2. How to buy stocks using Margin Trading Facility (MTF)?
  3. Zerodha's RMS policy: Squaring off positions for Margin Trading Facility (MTF)
  4. What do the entries in Margin Trading Facility (MTF) ledger mean?
  5. What is the interest rate for using MTF and how is it calculated?
  6. Why does the "MTF buy order is not allowed as there is an open holding sell position in this stock. Please close that position before placing MTF buy order." error appear?
  7. Does Zerodha offer lower interest rates for MTF?
  8. Why is Margin Trading Facility (MTF) not allowed for some clients?
  9. Why is a nudge displayed mentioning: "Selling this stock will affect your MTF position since you have existing holdings. If you wish to hold that MTF position, avoid selling this stock"?
  10. Why does the “MTF buy order is not allowed for the day as there is an MTF holding sell position in this stock.” error appear?
  11. How are stocks sold when selling MTF holdings?
  12. How to convert MTF holdings or positions to delivery?

Margins or Leverage
  1. What is a Margin calculator?
  2. How much margins or leverage does Zerodha provide?
  3. What are the different types of margins charged by the exchange?
  4. What changes due to the new upfront margin requirements?
  5. What is Value at Risk (VAR), Extreme Loss Margin (ELM), and Adhoc margins?
  6. Why is higher than usual margin blocked for my F&O trades close to expiry?
  7. Can long-dated contracts be traded in Zerodha?
  8. How to find the margins required to take a trade?
  9. By when should I add additional margins if I receive a margin call?
  10. Can I use options premium received to open new F&O positions?
  11. What is the leverage indicator?
  12. Can I use F&O profits on the same day?
  13. Does Zerodha provide leverage against the available funds in my trading account?
  14. Why doesn't my Kite fund balance include profits or credits from previous trading days?
  15. Why are market orders blocked for deep ITM index options?
  16. Why is the entire margin required to enter into a hedged position?
  17. Will physical settlement occur if I have no cash but LiquidBees are pledged?
  18. Why are market orders blocked for long-dated options?
  19. What does "free cash" mean?
  20. Why wasn't my SLM order with trigger price outside circuit limits rejected?
  21. Why was my order cancelled with "Pending order was cancelled by the exchange at the end of the trading session"?
  22. Why did I receive an email and voice message about provisional margin shortfall?
  23. How to find the intraday leverages currently offered for MIS and CO?
  24. Why does Zerodha increase intraday margins for MIS and CO on days when the market is volatile?
  25. Why is margin benefit not provided for the covered call strategy in Zerodha?
  26. Why is a nudge displayed mentioning that 100% of the funds from the sale of holdings can be used for other trades?
  27. Why is there a restriction in placing new NRML orders in some currency contracts?
  28. How to check the latest margin requirements?
  29. Does Zerodha provide leverage for delivery/carry over positions?
  30. Why is an additional margin required for selling index options?
  31. Why was my account in negative balance after the market order was executed?
  32. How to verify the collateral details reported by Zerodha?
  33. Why does the Kite fund balance not include profits from today?

Margin penalty
  1. What is a margin penalty, and why is it charged?
  2. How is the margin penalty calculated?
  3. What are margins and how can margin shortfall occur?
  4. Can exiting one leg of a hedged position lead to a margin shortfall?
  5. Why should clients transfer funds to cover margin shortfalls?
  6. Does Kite allow me to take positions with my unsettled balances?
  7. Will I face a peak margin penalty if I make a loss due to a freak trade?
  8. How much penalty/What’s the rate of penalty levied by the Exchange?
  9. What is Mark to Market (MTM)?
  10. How to verify if Zerodha has passed the margin penalty to the exchange?
  11. Why should I transfer funds for a margin shortfall if I have already closed my positions?
  12. Why are additional margins being blocked for my existing long option position?

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