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Margin Trading Facility

Borrowing to buy shares increases both gains and losses. Estimate the full cost first.

Margin Trading Facility uses borrowed funds. Losses can exceed your own capital, interest accrues daily, and a shortfall can trigger a margin call or forced square-off. Figures shown are illustrative estimates.

Calculator

Illustrative estimates only

Assumed funding rate: 14.5% p.a., charged daily on the borrowed amount.

Position value

₹1,45,700

50 × 2,914

Your funds

₹58,280

40% upfront margin

Amount borrowed

₹87,420

2.50× leverage

Interest for 30 days

₹1,042

Break-even move +0.72%

Risk view

What has to happen for this to go wrong

  • Illustrative margin-call price₹2,186
  • Fall from current price to that level-25.0%
  • Loss if price falls 10%₹15,612
  • …as a share of your own funds-26.8%

If the shortfall is not funded in time, the broker may sell pledged shares without further notice. Interest continues to accrue until the borrowed amount is repaid.

Repayment

How the facility is closed out

  1. Sell the position — sale proceeds first repay the borrowed amount and accrued interest.
  2. Or deposit funds to convert the position to fully-paid delivery holding.
  3. Or pledge additional eligible securities to restore the required margin.

Eligible stocks

37 of 40 sample stocks

StockSectorPriceMarginMax leverageRate
RELIANCEEnergy2,91440%2.5×14.5%
TCSIT3,86035%2.9×14.5%
HDFCBANKFinancials1,68220%5.0×14.5%
INFYIT1,59445%2.2×14.5%
ICICIBANKFinancials1,14835%2.9×14.5%
BHARTIARTLTelecom1,49035%2.9×14.5%
ITCFMCG43820%5.0×14.5%
LTCapital Goods3,52030%3.3×14.5%
SBINFinancials81235%2.9×14.5%
AXISBANKFinancials1,12845%2.2×14.5%
KOTAKBANKFinancials1,76220%5.0×14.5%
HINDUNILVRFMCG2,48035%2.9×14.5%
MARUTIAuto12,48030%3.3×14.5%
TATAMOTORSAuto96240%2.5×14.5%
SUNPHARMAPharma1,74225%4.0×14.5%
CIPLAPharma1,51635%2.9×14.5%
DRREDDYPharma1,28845%2.2×14.5%
TITANConsumer3,41035%2.9×14.5%
ASIANPAINTConsumer2,38035%2.9×14.5%
NESTLEINDFMCG2,26040%2.5×14.5%
ULTRACEMCOCement11,24025%4.0×14.5%
GRASIMCement2,56035%2.9×14.5%
JSWSTEELMetals94240%2.5×14.5%
TATASTEELMetals14830%3.3×14.5%
HINDALCOMetals67230%3.3×14.5%
COALINDIAEnergy41225%4.0×14.5%
NTPCUtilities34850%2.0×14.5%
POWERGRIDUtilities29825%4.0×14.5%
BELDefence31235%2.9×14.5%
WIPROIT28845%2.2×14.5%
HCLTECHIT1,64220%5.0×14.5%
TECHMIT1,56845%2.2×14.5%
BAJFINANCEFinancials7,12035%2.9×14.5%
DMARTRetail3,86045%2.2×14.5%
ZOMATOInternet26225%4.0×14.5%
DIXONElectronics14,20035%2.9×14.5%
TRENTRetail5,62035%2.9×14.5%
IllustrativeReal eligibility, margins and rates are set by the broker and the exchange.