How to buy stocks using Margin Trading Facility (MTF)?

To buy stocks using the Margin Trading Facility (MTF), DDPI must be enabled in the Zerodha account. To learn more about MTF, check out MTF FAQs.

To place a buy order using MTF on Kite web, follow these steps:

1. Select a stock from the approved list of securities for MTF.
2. Hover over the stock and click on B to open the buy order window.
3. Click on Regular and then on MTF.
4. Enter the quantity and the price.
5. Click on Buy.

The charges for using MTF are as follows:

• Interest: 0.04% per day(₹40 per lakh) on the funded amount. The interest is applied from T+1 day until the stocks are sold.
• Brokerage: 0.03% or ₹20, whichever is lower per executed MTF order. From 1st March 2025, the brokerage charges will be revised to 0.3% or ₹20, whichever is lower per executed MTF order.
• Pledge charges: ₹30+ GST per ISIN per pledge, and no charges for unpledging.
• Square-off charges: ₹50 + GST per order squared off by Zerodha.

Use the MTF calculator to calculate the interest charges and required margins based on the holdings period.