Margin Trading Facility (MTF)
at 9.65% p.a.*
Enhance your buying power by up to 4x
Buy stocks now and Pay Later with Margin Trading Facility
*Investments in the securities market are subject to market risks. Read all the documents carefully before investing.
*Investments in the securities market are subject to market risks.
Read all the documents carefully before investing.
Why trade
with MTF on
ICICI Direct?
Enjoy an interest rate as low as 0.0265% per day
Buy stocks by paying only a fraction of the order amount
Trade across a wide range of 1400+ stocks
Utilise exclusive, research-backed recommendations
Research Recommendations
Get short term investment ideas backed by research
MTF Margin Calculator
Choose the right plan for you and save on MTF interest costs
| Brokerage Plan |
MTF Interest Rates (Per Annum) |
MTF Interest Rates (Per Day) |
Delivery Brokerage |
|---|---|---|---|
|
₹ 9,999
ONE TIME
|
9.65% | 0.0265% | 0.07% |
|
₹ 4,999
ONE TIME
|
9.65% | 0.0265% | 0.10% |
|
₹ 999
ONE TIME
|
17.99% | 0.0492% | 0.22% |
|
Default Plan
|
17.99% | 0.0492% | 0.29% |
A charge of ₹25 + GST applies per pledge/unpledge transaction.
Things to remember during MTF
Assess Risk
Leverage amplifies both profits and losses. Get a clear understanding of the risks involved.
Monitor Positions
Track MTF positions regularly to stay aligned with margin requirements.
Mind the Timeline
MTF positions can be held for up to 360 days. Plan your trades accordingly.
How to place an MTF order?
How can I invest in MTF without cash?
Use your existing Shares as Margin (SAM) instead of cash to buy stocks with MTF
Step 1:
Visit Shares as Margin
Go to Stocks → Funds → Shares as Margin
Step 2:
Select Stocks
Enter the quantity of the stocks you want to pledge.
Step 3:
Choose Equity Segment
To create limits, select the equity segment, enter the OTP, and submit.
Step 4:
Generate Limits & Place MTF Orders
Trading limits are created instantly and visible under Securities Allocation.
Frequently Asked Questions
MTF (Margin Trading Facility) helps you buy stocks by paying only a part of the total value, known as the initial margin. The remaining amount is funded by ICICI Direct.
Points to note:
- MTF holdings are valid for up to 360 days
- You can sell/square off your MTF holdings or convert them to delivery (CTD)
- Interest is charged on the funded amount as per your selected brokerage plan
- The initial margin can be provided through cash or collateral/pledged shares (under the Shares as Margin feature of ICICI Direct)
Let’s assume you find an investment or trading opportunity worth ₹4,00,000, but you have only ₹1,00,000 available in your bank account. Normally, you wouldn’t be able to take this position.
However, with MTF offering up to 4× leverage (subject to stock eligibility), you can take the position.
Illustration
- Your margin contribution: ₹1,00,000
- Amount funded by ICICI Direct: ₹3,00,000
The funded amount attracts interest, starting as low as 9.65% per annum, depending on your brokerage plan. This position can be held for up to 360 days.
Interest under MTF is charged on the funded amount for the number of days the position is held. At ICICI Direct, the interest rate goes as low as 9.65% p.a., depending on your brokerage plan. Interest calculation begins from the exchange pay-in date (T+1 day) and continues until the T+1 day of settlement after the position is squared off.
Interest is calculated on a daily basis, including weekends and non-working days.
Example: If you buy shares worth ₹4,00,000 using ₹1,00,000 of your own funds, ICICI Direct funds the remaining ₹3,00,000.
-
Daily interest = (Funded amount × Applicable rate) ÷ 365
= ₹3,00,000 × 9.65% ÷ 365 ≈ ₹81.05 per day - If you hold the position for 10 days, total interest = ₹81.05 × 10 = ₹810.50 approximately
You can use the MTF Calculator to estimate charges in advance.
ICICI Direct offer MTF on 1400+ stocks. You can view the stock list to check which stocks are eligible for MTF.
Shares purchased under MTF can be held for up to 360 days. To avoid square-off due to a margin shortfall, ensure that you maintain adequate margins and monitor your positions regularly.
* Interest rate depends on your brokerage plan
