If you're actively trading using the Margin Trading Facility (MTF), an mtf calculator is one tool you can't afford to ignore. It helps traders understand their actual buying power, interest cost, and potential profitability before executing a trade.
What Does an MTF Calculator Do?
Calculates Required Margin: Shows how much upfront capital you need to invest.
Estimates Interest Cost: Helps you plan for holding period costs.
Shows Total Exposure: Tells you how much stock you can buy with your available funds.
Break-even Price: Tells you the price at which your trade becomes profitable after charges.
For example, if you have ₹50,000 and want to trade a stock with a 25% margin requirement, the calculator will show that you can buy up to ₹2,00,000 worth of stock and what your interest cost would be per day or per month.
Pro tip: Use the MTF calculator before every trade to avoid surprises and manage your risk efficiently.