A short-term borrowing facility with a fixed interest rate that investors can use to cover any gaps they might have while trading futures and options or buying stocks.
Margin funding is a loan that allows investors to borrow money from their broker to buy stocks or trade in the market.
Investors use margin funding to amplify their buying power by leveraging borrowed funds alongside their capital. This allows them to increase their potential returns, but it also comes with increased risk.
Generally, you cannot withdraw margin money as cash. It's used specifically for trading or investing purposes within your brokerage account.
MTF ( Margin Trading Facility) is a service that allows an investor to purchase shares and securities from available capital by paying a fraction of the overall transaction value (margin). while Margin Pledge is a method of pledging the shares to a stockbroker through exchange for a collateral margin.
You will have to open a margin account with the stock broker to get a margin funding facility.
Margin trading funding enables investors to increase their buying power, potentially amplifying returns through leverage. It also allows for short-selling opportunities and flexibility in trading strategies.
If you buy a stock with money that hasn't been settled yet and then sell it before the original funds are settled, it's considered breaking the rules (Regulation T) and is called a good faith violation. If this happens, you may face a penalty where you're restricted from trading for 90 days.
Margin Trading Funding facility is applicable only for trading in equity shares, making it useful for investors who want to profit from short-term changes in stock prices but don't have enough cash upfront.
Swastika usually provides upto 5x intraday trading limits for Equities. For intraday derivatives trading, you will get up to 5x limits for Equity & Currency Futures & 2x limits for Equity and Currency Options. Kindly note that these limits are available for selective good quality stocks and contracts. Also, limits may change depending upon the market conditions.
Swastika provides instant pay-in facility. Once, you transfer funds through easy online payment methods listed on our website, the money gets reflected instantaneously in your trading account. We also offer same day pay-out facility if you place fund withdrawal request by 12PM.
Add money to your trading wallet and withdraw anytime.
Login to your trading account through web app, mobile app, or desktop app.