Archive · 3 Aug 2026
MTF Lets Investors Leverage Capital with Kotak Neo
Margin Trading Facility, or MTF, lets people buy stocks by paying only a small part of the total price and borrowing the rest from a broker.
Kotak Neo offers up to four times the amount you have, and charges a flat 9.69% interest.
This can make your gains bigger if the stock goes up, but it also makes losses bigger if the stock falls.
Because you borrow money, the broker may ask you to add more money if the stock price drops too much.
Traders need to plan ahead, know how much they can afford to lose, and have an exit plan.
In May 2026, the use of MTF grew 11.1% compared to the previous month.
MTF lets investors buy shares by paying only a margin, with the broker financing the rest.
Kotak Neo offers up to 4× leverage and a flat 9.69% interest rate on MTF trades.
MTF can increase potential returns but also magnifies losses and incurs financing costs.
The facility requires careful risk management, including margin calls and exit plans.
As of May 2026, MTF book grew 11.1% sequentially, ten times the growth in April.
- Who
- Investors using margin trading, especially via Kotak Neo
- What
- Buying shares with borrowed funds through the MTF
- When
- Article references May 2026 data
- Where
- India stock market, Kotak Neo trading platform
- Why
- To increase flexibility, investment size, and potential returns
- Facility
- Margin Trading Facility (MTF)
- Leverage
- Up to 4×
- Interest Rate
- Flat 9.69%
- Growth
- 11.1% sequential growth in May 2026
- Broker
- Kotak Neo