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    Buy Now Pay Later MTF

    Why is interest charged on my MTF position even after I have squared off/sold it?

    Interest on your funded positions in MTF is based on the market settlement cycle. This means:

    • When you buy a stock on Monday, settlement happens on Tuesday and interest starts to be charged from Wednesday.

    STOCK X Bought on Monday

    STOCK X Settlement on Tuesday

    STOCK X Interest Charged from Wednesday

    • If you sell this stock on Thursday, sell settlement for the sale happens on Friday. So, the interest will be charged on Wednesday, Thursday and Friday.
    STOCK X Sold on Thursday           
     
    STOCK X Sell Settlement on Friday         
     
    STOCK X Interest Charged from Wednesday

    • However, if the same stock was sold on Friday, settlement happens on Monday and interest will be charged from Wednesday to Monday.
    STOCK X Sold on Friday           
     
    STOCK X Settlement on Monday         
     
    STOCK X Interest Charged from Wednesday to Monday
     
    How is Interest Charged for MTF? What is “Interest on MTF(SAM)” and why am I being charged this? Where is the MTF interest debited from? Where can I find my MTF margin statement?