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Margin Trading Facility (MTF) and Margins

Margin Trading Facility (MTF)
  1. FAQs on 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 is the error “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.” displayed?
  7. How are stocks sold when selling MTF holdings?
  8. How to convert MTF holdings or positions to delivery?
  9. Why is the error “MTF buy order is not allowed for the day as there is an MTF holding sell position in this stock.” displayed?
  10. 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"?
  11. Why is Margin Trading Facility (MTF) not allowed for some clients?

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

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. Why are additional margins being blocked for an existing long option position?
  7. Why should funds be transferred for a margin shortfall if the client has already closed the positions?
  8. How to verify if Zerodha has passed the margin penalty to the exchange?
  9. What is Mark to Market (MTM)?
  10. How much penalty/What’s the rate of penalty levied by the Exchange?
  11. Will there be a peak margin penalty if a loss is made due to a freak trade?
  12. Does Kite allow me to take positions with my unsettled balances?

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