What Are MTF Stocks and Why Do They Matter?
What Are MTF Stocks and Why Do They Matter?
Blog Article
If you're exploring ways to boost your buying power in the stock market, you’ve probably come across the term MTF stocks. Let’s break it down simply.
MTF stands for Margin Trading Facility — a service offered by brokers that allows investors to buy more shares than they can afford by borrowing funds. However, not all stocks are eligible for margin trading. Only certain approved securities fall under the category of MTF stocks.
What are MTF Stocks?
mtf stocks are shares that brokers allow you to buy on margin. These are typically:
Highly liquid stocks
Large-cap and fundamentally strong companies
Low volatility securities that pose lesser risk
SEBI (Securities and Exchange Board of India) and stock exchanges regulate and approve the list of eligible MTF stocks, which brokers update regularly.
Why Do MTF Stocks Matter?
Here’s why understanding MTF stocks is important:
Increased buying power: You can trade larger quantities with less upfront capital.
Diversification: Access more stocks without fully deploying your own funds.
Long-term holdings: Unlike futures, MTF allows you to hold stocks as long as margin requirements are maintained.
Example of MTF Stocks
Popular MTF stocks often include companies like Reliance Industries, Infosys, TCS, and HDFC Bank — all known for their liquidity and strong fundamentals.
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