WHAT ARE MTF STOCKS AND WHY DO THEY MATTER FOR TRADERS?

What Are MTF Stocks and Why Do They Matter for Traders?

What Are MTF Stocks and Why Do They Matter for Traders?

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mtf stocks refer to those stocks that are eligible for trading under the Margin Trading Facility (MTF) provided by brokers. In MTF, traders can buy these approved stocks by paying only a fraction of the total trade value upfront, with the rest being financed by the broker.


These stocks are typically chosen based on factors like:





  • High liquidity




  • Low volatility (or predictable movement)




  • Market capitalization and regulatory compliance




  • Inclusion in benchmark indices like NIFTY 50 or Sensex




Example of MTF stocks: HDFC Bank, Infosys, Reliance Industries, TCS, ICICI Bank.


Trading in MTF stocks allows traders to leverage their positions and potentially amplify returns. However, it also increases risk if stock prices move unfavorably. Always check the broker’s MTF stock list before placing orders and assess risks using an MTF calculator.

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