What is an MTF Calculator and How Does it Work?
What is an MTF Calculator and How Does it Work?
Blog Article
When trading with Margin Trading Facility (MTF), it’s crucial to know how much you can borrow and how much margin you need to maintain. This is where an MTF calculator comes into play.
An mtf calculator is a simple online tool provided by brokers that helps investors calculate:
The margin required to buy stocks on leverage.
The buying power based on your available funds.
Interest costs associated with borrowing under MTF.
How Does It Work?
You simply enter:
The stock price
The quantity of shares you want to buy
Your available margin/funds
The calculator instantly tells you:
How much additional funding the broker will provide
The total exposure you can take
The interest cost on borrowed funds (usually shown annually or daily)
Input | Output |
---|---|
Stock price | Margin required |
Quantity | Total exposure |
Available funds | Leverage available |
Why Use It?
An MTF calculator takes the guesswork out of margin trading. It helps plan your trades smartly, avoid margin calls, and manage your risk better.
If you’re using an MTF stock list and want to maximize leverage safely — this calculator is your best friend.
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