Basics of MTF

Margin Trading Facility (MTF) is a service offered by Alice Blue that allows you to buy shares by paying only a part of the total amount. The remaining balance is funded by Alice Blue, and interest is charged on the borrowed amount.

Let’s say you have ₹1000 in your trading account and want to buy a stock priced at ₹1000 per share.
If the stock is eligible for 3x MTF margin with Alice Blue, you can buy 3 shares even though you only have ₹1000.

Here’s how the calculation works:
Price per share = ₹1000
Number of shares you want to buy = 3
Total value of the trade = ₹1000 × 3 = ₹3000
Your contribution (margin) = ₹1000
Amount funded by Alice Blue = ₹3000 – ₹1000 = ₹2000
So, with just ₹1000, you’re able to buy shares worth ₹3000 using MTF.

Note: Alice Blue will charge interest on the ₹2000 borrowed, typically around 0.04% per day, which equals about 18% annually.

1 Buy More with Less Money
  > You can purchase more shares even if you don’t have the full amount.
  > Example: With ₹10,000 and a 4x margin, you can buy shares worth ₹40,000.

2  Hold Stocks for Delivery
> Unlike intraday trading, MTF allows you to take delivery of the stocks and hold them as long as you want, if you maintain the required margin and pay interest.

3 Potential for Higher Profits
> In a rising market, MTF helps you make higher returns because you control more shares with less capital.

 4 No Need to Sell Immediately
> You can hold onto your positions over days or weeks—no forced same-day squaring off like in intraday margin.
5 Easy to Use
  > MTF can be activated with just a one-time agreement and used directly while placing orders.

NO, but interest will be charged by Alice Blue on the funded amount.

The maximum single-scrip funding limit for a client will not exceed ₹50 lakhs, and the total funding for a single client will not exceed ₹1.5 crore.

MTF enables investors to purchase shares by paying only a portion of the total transaction value upfront, while the broker funds the remaining amount. 

No. MTF orders can be placed only if sufficient margin is available in your MTF account at the time of placing the order.

Yes. The approved securities list is reviewed every month, and securities may be added or removed based on the review. 

You must select the product code “MTF” while placing the order through the trading application.

No. Securities pledged as the non-cash margin component are not considered for interest calculation. Interest is charged on the entire funded value.

Interest is calculated daily on the running balance and is debited to your ledger at the end of each day.

Interest is charged at 0.049% per day on the funded amount after adjusting the available cash margin in your MTF ledger.

Yes. The company may revise the interest rate after providing prior notice to clients.

If the M2M loss or margin shortfall is not cleared within 2 working days from the margin call, Alice Blue may square off your MTF position to recover the dues.

You must clear the outstanding debit and take delivery of the shares to your demat account immediately. Otherwise, Alice Blue may square off the position without further notice.

If your margin shortfall or M2M loss reaches 80% and is not funded, Alice Blue may immediately square off your funded MTF shares. If there is still a shortfall after the square-off, pledged collateral securities may also be sold to recover the outstanding amount.

Alice Blue may liquidate your MTF position if you fail to clear margin shortfalls or M2M losses within the stipulated time, if the security is removed from the approved list, or if a settlement-related debit arises due to auction or close-out by the exchange.