For investors who use margin trading to amplify their stock market positions, managing leverage and costs is crucial. That’s where an mtf Calculator comes in handy.
What is an MTF Calculator?
An MTF (Margin Trading Facility) Calculator is a tool that helps traders determine:
How much margin is required to buy a stock using MTF.
The leverage ratio available based on the stock.
The funding amount provided by the broker.
The interest cost associated with the borrowed amount.
This calculator simplifies complex calculations and gives you a clear snapshot of your costs and exposure before placing a trade.
Key Inputs in an MTF Calculator:
| Input Field | What It Means |
|---|---|
| Stock Name | The stock you wish to buy. |
| Stock Price | Current market price of the stock. |
| Quantity | Number of shares you want to buy. |
| Broker Margin % | Margin provided by the broker (e.g., 75%). |
| Holding Period | Number of days you plan to hold the stock. |
Benefits of Using an MTF Calculator
✅ Accurate Margin Requirement
✅ Clear Leverage Estimation
✅ Forecast Interest Charges
✅ Plan Trades Efficiently
Example:
Let’s say you want to buy 100 shares of a stock priced at ₹500 with a broker offering 75% margin.
Total value: ₹50,000
Margin required: ₹12,500
Broker funds: ₹37,500
Interest (assume 18% p.a.): ~₹184 for 10 days
Using an MTF calculator, you get this breakdown instantly.
Final Words
An MTF calculator is an essential tool for margin traders. It ensures you’re well-informed about your capital requirements, leverage, and interest costs before entering a position. Whether you're a beginner or an experienced trader, using this calculator can help you optimize your trades and manage risks better.