What is the margin facility for intraday traders?

The margin facility available to intraday traders is typically referred to as Margin Trading Facility (MTF). This is a crucial tool for day traders as it allows them to leverage their capital. Essentially, MTF lets you borrow funds from Share India to buy more shares than you could afford with just your own money. This amplifies your trading power, meaning you can control a larger position in a stock with a smaller initial investment. For example, with a certain margin multiplier (say, 5x), you could potentially control ₹50,000 worth of stock with just ₹10,000 of your own capital.

This leverage is particularly attractive for intraday trading because traders aim to capitalise on short-term price movements. It’s absolutely essential to understand that while MTF is beneficial, it also magnifies losses. If the stock moves against your position, your losses are also multiplied, and you’re still obligated to repay the borrowed amount to your broker. Therefore, while MTF can be used for intraday trading, it’s a high-risk, high-reward strategy that requires careful consideration, understanding of margin requirements, and a robust risk management plan. 

To start intraday trading with Share India, refer to.

If you have any questions or need further support, don’t hesitate to contact Share India’s support team. You can reach us at 18002030303 or email us at support@shareindia.com.