Archive · 12 Dec 2025
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.
MTF book in India grew from ₹0.80 lakh crore in November 2024 to ₹1.15 lakh crore in November 2025.
NSE leads MTF financing with 97% of the total market share.
BSE experienced a 2.1% y-o-y contraction but saw an 8.9% y-o-y increase in November 2025.
MTF allows investors to buy stocks by paying only part of the cost, with the rest funded by a broker.
MTF can be risky in volatile or bearish markets, with brokers potentially selling stocks to prevent losses.
- Who
- Investors, brokers, National Stock Exchange (NSE), Bombay Stock Exchange (BSE)
- What
- Growth and risks of Margin Trading Facility (MTF)
- When
- November 2024 to November 2025
- Where
- India
- Why
- To understand the benefits and risks of MTF in the stock market
- MTF Book Growth
- ₹0.80 lakh crore (Nov 2024) to ₹1.15 lakh crore (Nov 2025)
- NSE MTF Share
- 97% of total MTF financing
- BSE MTF Growth
- 8.9% y-o-y increase in November 2025
- Eligible Stocks
- Group I stocks (highly-liquid with low-impact cost)
- Broker Eligibility
- Net worth of at least ₹3 crore
- Interest Application
- From T+1 day, varies by brokerage and plan
- Trigger Price
- Calculated based on initial margin price and market conditions