MTF is ideal for experienced traders who understand market risks and want to leverage their capital. It may not be suitable for conservative investors.

The margin requirement depends on the stock being traded and is governed by SEBI and exchange guidelines. Typically, the initial margin ranges to 50% of the trade value.

If you don’t meet the margin call within the stipulated time, the broker may square off (sell) some or all of your pledged securities to recover the shortfall.