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The rise of margin trading facility in India: A regulated product for smarter investing


Published on 2025-02-22 02:21:10 - MSN
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  • MTF is a leveraged financial product enabling investors to acquire a greater number of shares than their available cash balance might normally allow. In contrast to futures and options (F&O) that typically offer leverage in the range of 5 to 50 times,

The article from MSN discusses the increasing popularity of Margin Trading Facility (MTF) in India, which allows investors to buy securities by paying only a fraction of the total value, with the balance funded by brokers. This facility has become a regulated product under the Securities and Exchange Board of India (SEBI), enhancing its credibility and investor protection. MTF enables investors to leverage their investments, potentially increasing returns, but it also comes with higher risks due to the borrowed funds. The article highlights how MTF has democratized access to high-value stocks for retail investors, offering them the opportunity to engage in sophisticated trading strategies previously reserved for institutional investors. It also notes the importance of understanding the terms like interest rates, margin calls, and the potential for significant losses. The piece emphasizes the need for investors to be well-informed about the mechanics of MTF, including the regulatory framework that governs it, to make smarter investment decisions.

Read the Full MSN Article at:
[ https://www.msn.com/en-in/money/other/the-rise-of-margin-trading-facility-in-india-a-regulated-product-for-smarter-investing/ar-AA1zyLQU ]
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