Under MTF, traders buy shares of a company on borrowed funds, upto 75% of the required amount is provided by Upstox, and the remaining 25% is paid by you.

Keep the following things in mind when MTF trades:

• Stocks bought under MTF can be held till you wish to hold it or convert it (on a temporary basis), however during such holding period, if there is margin shortage, MTM shortage or other debits, the MTF position may be fully or partially squared off . You can view them under the Positions tab on the Upstox platform.

• You can close your MTF positions anytime

• At any point, you can take MTF positions of up to ₹5 crore

Charges applicable to MTF trade:

Upstox has two plans for MTF trading, ‘Basic’ and ‘Plus’, and the charges differ according to the plan.

• Under the Basic plan

In the MTF Basic plan, you will be charged ₹20/day for every ₹40,000 borrowed under MTF.

For example, you borrow funds worth ₹70,000 under MTF.

Charge on this MTF trade per day will be,

₹20/day (on first ₹40,000) + ₹20/day (next ₹30,000) = ₹40/day.

• Under the Plus plan

Under the MTF Plus plan, you will be charged ₹20/day for every ₹50,000 borrowed, up to ₹1,00,000. If you borrow more than ₹1 Lac, then the fees applicable will be ₹20/day for every ₹40,000 borrowed.

For example, you borrow ₹1,20,000 under MTF. Charge on this MTF trade per day will be,

₹20/day (first ₹50,000) + ₹20/day (next 50,000) + ₹20/day (remaining ₹20,000) = ₹60/day.

Both plans carry an additional fee of ₹20 (plus taxes) for pledging and unpledging shares with CDSL. Brokerage fee of ₹20/order will also be added.

Aside from these charges,₹50/order brokerage is charged in case of forcibly squared-off MTF positions. If any penalties are levied on you, you will be charged for them as well.

Once you activate MTF, we will also send a complete list of ‘terms and conditions’ to your registered email ID.