Archive · 12 Dec 2025

Margin Trading Facility Growth and Risks

Margin Trading Facility Growth and Risks

Margin Trading Facility (MTF) lets investors buy stocks by paying only part of the cost, with the rest funded by a broker.

The MTF book in India grew from ₹0.80 lakh crore in November 2024 to ₹1.15 lakh crore in November 2025, with the National Stock Exchange (NSE) leading this segment.

The Bombay Stock Exchange (BSE) saw a small contraction but then a recovery.

MTF can be beneficial in a bull market but risky in volatile or bearish conditions.

Brokers can automatically sell stocks if the price hits a certain trigger point to prevent losses.

MTF is best for experienced traders who can handle market risks and volatility.

Beginners and risk-averse investors should be cautious.

Sources