What is an MTF Calculator?
What is an MTF Calculator?
Blog Article
An mtf charges calculator is a handy online tool that helps traders estimate how much margin they need to invest in stocks using the Margin Trading Facility (MTF). It calculates the required upfront payment, broker funding, and potential leverage based on the stock price and margin requirement.
How Does It Work?
You typically input the following:
Stock Price
Quantity
Margin Percentage (varies by stock and broker)
The calculator then shows:
Total Trade Value
Your Margin (Investment)
Broker’s Funding
Leverage Ratio
Example Calculation
| Parameter | Value |
|---|---|
| Stock Price | ₹1,000 |
| Quantity | 100 |
| Total Value | ₹1,00,000 |
| Margin Requirement | 25% |
| Your Investment | ₹25,000 |
| Broker Funding | ₹75,000 |
Why Use an MTF Calculator?
✅ Plan your trades efficiently
✅ Understand your buying power
✅ Estimate interest cost
✅ Avoid margin shortfalls
Conclusion
An MTF Calculator is a simple yet powerful tool for traders who want to make informed decisions when using margin. It gives you clarity on capital requirement, leverage, and risk—before you even place a trade.
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