Top Benefits of Using MTF Stocks for Traders and Investors
Top Benefits of Using MTF Stocks for Traders and Investors
Blog Article
For active traders and savvy investors, mtf stocks open up exciting opportunities to maximize returns — if used wisely.
1. Enhanced Buying Power
With an MTF, you don’t need to block the full stock value upfront. A smaller margin gets you access to high-value stocks from the approved MTF stock list.
2. Longer Holding Period
Unlike intraday leverage (which needs square-off by day-end), MTF stocks can be held for weeks or even months, offering flexibility for positional trading.
3. Potential for Higher Returns
If the stock appreciates, your ROI increases significantly because you’ve invested less capital upfront. For example:
| Investment Type | Capital Invested | Stock Gain | Return on Capital |
|---|---|---|---|
| Without MTF | ₹1,00,000 | 10% (₹10,000) | 10% |
| With MTF (50%) | ₹50,000 | 10% (₹10,000) | 20% |
4. Portfolio Diversification
With freed-up capital, you can spread your investments across multiple MTF stocks, reducing concentration risk.
5. Streamlined Process
Modern platforms offer seamless MTF calculators, auto-margin calculations, and integrated demat accounts, making the process smooth and transparent.
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