What Are MTF Stocks and How Do They Work?

What Are MTF Stocks and How Do They Work?

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mtf stocks refer to shares that are eligible for Margin Trading Facility—a service that allows investors to buy stocks by paying only a portion of the total value upfront. The rest is funded by the broker as a loan against the margin.

This facility is ideal for experienced traders who want to leverage their capital for higher returns. However, since it involves borrowed money, it also increases the risk. SEBI mandates that only approved stocks with good liquidity and market cap be allowed under MTF. These lists are usually published by stockbrokers and may vary slightly from one broker to another.

If you’re wondering how to get started, first open a margin-enabled demat account, ensure you meet the margin requirements, and then select from the eligible MTF stock list provided by your broker.

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