Margin Trading Facility (MTF)
No slabs. No higher rates as you trade more.
Just one flat rate for everyone.
Buy More Stocks with Less Funds, only with MTF
Invest in stocks by paying only a part of the total value & let Kotak Neo handle the rest.
- Buy now, pay later (BNPL) facility for stocks
- More buying power with up to 4X leverage on 1,300+ stocks
- Single interest rate across all amounts, no confusing slabs with Trade Free Pro
- Trade bigger without blocking full capital
Calculate the Interest & Margin Requirements for Margin Trading:
Quantity
You pay : ₹1,00,000.00
Funding by Kotak Neo : ₹4,00,000.00
Key Features of Margin Trading Facility
How MTF Works?
- Choose from 1,300+ MTF-eligible stocks, all available on Kotak Neo
- Pay just a part of the trade value, Kotak Neo funds the rest
- Your shares get credited to your Demat under MTF holding
- Pay interest only on the funded amount, for as long as you hold
- Maintain your margin if stock prices dip, to stay in control
How MTF Works with Kotak Neo?
Quantity | 100 | 100 | 100 |
Trade Value | ₹10,000 | ₹10,000 | ₹10,000 |
You paid | ₹2,000 | ₹2,000 | ₹2,000 |
Funded amount | ₹8,000 | ₹8,000 | ₹8,000 |
Holding period | 30 days | 30 days | 30 days |
Interest charges (For 30 days) | ₹98.40 @ 14.99% p.a. | ₹98.40 @ 14.99% p.a. | ₹63.68 @ 9.69% p.a. |
MTF Brokerage charges | ₹0 | ₹0 | ₹0 |
Total MTF Brokerage | ₹0 | ₹0 | ₹0 |
Profit with MTF | ₹2,500 | ₹2,500 | ₹2,500 |
Profit without MTF | ₹500 | ₹500 | ₹500 |
Net Profit after brokerage and interest | ₹2,401.60 | ₹2,401.60 | ₹2,436.32 |
Net Profit % with MTF | 120.08% | 120.08% | 121.82% |
Net Profit % without MTF | 25% | 25% | 25% |
Get upto 4x leverage with our Margin Trading Facility (MTF) at a low interest rate.
₹10 per order Brokerage on all carry forward F&O Trades.
₹0 per order Brokerage on Stock Delivery trades for first 30 days.
₹0 per order Brokerage on Equity Intraday Trades for first 30 days.
Benefits of Margin Trading Facility With Kotak Neo
Thinking of using MTF? Here’s What You Need
To start using MTF on Kotak Neo, you must meet these basic requirements:
- Active trading & Demat account with Kotak Neo
- A minimum of 25% of the total trade value or eligible collateral in your account
- Access to Trade Free Pro Plan to get MTF at 9.69%
- Required minimum margin for your selected stocks
How to place MTF Trade
Step 1: Access the Buy Page
Go to the buy order page of your preferred stock.
What Will MTF Cost You?
- Charged only on the funded amount daily
- Brokerage & charges as per your Kotak Neo plan
- How 9.69% p.a. on Trade Free Pro Plan* works:
Stock Price | ₹100 |
No. of Shares | 100 |
Total Trade Value | ₹10,000 |
You Pay | ₹2,000 |
Funded by Kotak Neo | ₹8,000 |
Interest Rate (charged daily) | 9.69% p.a. (0.027% per day) |
Interest Payable | ₹2.16 per day |
MTF Vs Delivery Trading: Know the Differences
Capital Required | Pay part of trade value | Pay full amount |
Leverage | High (Up to 4x) | Limited to your funds |
Interest | Charged on funded amount | Not applicable |
Ownership | Under MTF till funded | Full ownership upfront |
Risk Level | High (due to leverage) | Low |
Profit Potential | High (amplified exposure) | Limited to invested capital |
Best For | Short to medium-term opportunities | Long-term investing |
What is MTF? | Risks, Features, Real Examples & Kotak Neo Offerings Explained by Ashish Nanda
Kotak Neo
•10m 31s
We believe in quality first and a technology-led approach that makes us a reputable choice for investment advisors across the industry.
*Margin available upto 4x on 1300+ stocks
FAQs
With MTF facility, you can purchase stocks without having to pay the full amount up front. So you pay a small part, and the rest will be funded by the broker.
When you avail MTF, you only have to pay a small part of the total trade amount. The broker then proceeds to fund the rest of it. Interest will only have to be paid on what you borrowed.
For example, you can buy ₹1,00,000 worth of shares by paying just ₹25,000. MTF funds the remaining ₹75,000, and you pay interest only on that amount for as long as you hold the shares.
Yes, MTF is 100% legal in India, and it is regulated by SEBI. It is only offered by authorised brokers under defined guidelines to ensure transparency and risk control.
The first eligibility criteria for using MTF is to have an active Kotak Neo Demat account. Apart from that, a sufficient margin amount or pledged collateral and acceptance of MTF terms are also required. You must also be on the Trade Free Pro Plan to avail the 9.69% p.a. flat interest rate across all slabs.
If your margin drops due to a fall in stock price, you will be required to add funds or collateral. Failing to do so could cause a shortfall and lead to lose your position.
With Kotak Neo’s Trade Free Pro Plan you will be charged a flat interest rate of 9.69% p.a. on the funded amount.
To activate MTF on Kotak Neo, just log in to the app, head to your profile, and open Account Details. From there, switch on Margin Trading Facility under the Products section. After accepting the T&C, your MTF will get activated.
MTF is suitable for investors based on their risk appetite and financial goals. MTF can increase your buying power, but it is always safe to assess risk and monitor positions before taking any decision.
You can use cash, stocks you already own, or even ETFs sitting in your Demat account. You'll receive a high percentage of the value, with a small haircut kept as a safety buffer to secure your collateral.
Yes, you can sell your shares bought under MTF anytime. The funded amount is adjusted, and the interest is charged only for the number of days you hold the position.