How to Use an MTF Calculator — A Simple Step-by-Step Guide
How to Use an MTF Calculator — A Simple Step-by-Step Guide
Blog Article
Trading with leverage can be exciting, but only when you know your numbers clearly. An mtf calculator takes the guesswork out of margin trading. Here’s a simple guide on how to use it effectively.
Step-by-Step: Using an MTF Calculator
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Enter Stock Price
Input the current market price of the stock you want to buy. -
Enter Quantity
Specify how many shares you plan to purchase. -
Select Margin %
Most calculators auto-fill this from the mtf stock list (e.g., 25%, 40%). -
Click Calculate
The tool shows:
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Total value of the trade
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Margin required (your investment)
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Broker-funded amount (borrowed)
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Interest cost (daily/monthly)
Example Output:
| Input | Output |
|---|---|
| Price: ₹500, Qty: 200 | Total Value: ₹1,00,000 |
| Margin %: 30% | Margin Required: ₹30,000 |
| Broker Funds: ₹70,000 | |
| Daily Interest: ₹14 (Assuming 7.5% p.a.) |
Pro Tips:
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Check different stock scenarios to plan large trades.
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Factor in holding period — longer holds mean higher interest.
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Always confirm margin eligibility from your broker's MTF stock list.
Conclusion
Using an MTF calculator is quick, simple, and critical for cost-efficient margin trading. Before leveraging your next trade, punch in the numbers and make informed decisions!
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