What is an MTF Calculator and How Does It Work?
What is an MTF Calculator and How Does It Work?
Blog Article
An mtf calculator is a digital tool designed to help traders calculate how much margin they need to buy stocks under the Margin Trading Facility (MTF). It provides quick answers to questions like:
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How much do I need to invest?
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What’s the broker-funded portion?
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How much leverage can I get?
???? How It Works:
You input:
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Stock price
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Number of shares
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Broker’s margin requirement (e.g., 25% or 50%)
The calculator then shows:
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Total transaction value
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Your required margin (cash or pledged shares)
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Broker’s funding amount
✅ Benefits of Using an MTF Calculator:
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Avoid manual calculations
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Compare multiple stock opportunities
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Understand your funding obligations upfront
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Helps you plan trades more efficiently
???? Example:
If you're buying 100 shares at ₹500 each and the broker margin is 25%:
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Total value = ₹50,000
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Your margin = ₹12,500
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Broker funds = ₹37,500
Conclusion:
The MTF calculator is an essential tool for any margin trader. It ensures you make informed decisions without risking over-leverage.