All-New Shoonya MTF: Buy Eligible NSE Stocks With Up to 2x Exposure

There are times when you find a stock opportunity, but the full purchase value may feel too high to block at once. You may prefer to keep some funds available for other market opportunities or portfolio requirements.

To address this gap, Shoonya has introduced its Margin Trading Facility (MTF), which allows you to buy stocks by paying only a portion of the total amount, with the remaining amount funded on an interest basis.

Let us understand how it works, what it costs, and what risks you need to track.

What is Shoonya MTF?

Shoonya MTF (Margin Trading Facility) allows you to trade in around Approx 1300+ eligible (Group 1) stocks using margin funding, where you pay only a part of the total investment, and the remaining amount is funded by Shoonya.

To use MTF, users are generally required to maintain a minimum margin of 50%. This may provide up to 2x exposure, depending on the stock and its applicable margin requirement.

The funded amount is subject to daily interest charges, and all MTF positions are monitored under Shoonya’s defined margin and risk-management rules.

What are the Key Features of Shoonya MTF

Shoonya MTF is designed to offer flexibility while maintaining transparency around funding costs and margin obligations.

• Up to 2x Buying Power: Users may receive up to 2x exposure by maintaining the applicable margin requirement.
• Trade Across 1,300+ Stocks: Access a broad universe of approved NSE Group 1 stocks under the MTF segment.
• Hold Positions for Up to 365 Days: Unlike intraday trades, MTF positions can be carried for up to one year, subject to margin and funding requirements.
• Transparent Charges: Applicable brokerage, funding costs, and other charges are visible before placing an order.
• Integrated App Experience: Activate MTF, view approved stocks, place orders, and monitor holdings from a single platform.
• Automated Pledge Process: Purchased MTF shares are pledged automatically as part of the funding process.
• Dedicated MTF Portfolio View: Track MTF holdings, margin usage, and order activity separately within the app.
• Risk Monitoring Framework: Positions are monitored continuously based on applicable margin and risk-management requirements.

How Does Shoonya Margin Trading Facility Work?

Getting started with Shoonya MTF is simple. Once activated, you can explore eligible stocks, check the required margin, and place an MTF order directly from the Shoonya mobile app.

Shoonya MTF Pricing and Charges

With Shoonya MTF, charges are clearly defined upfront, so you can review the applicable costs before placing an order.

What is the Shoonya MTF Interest Rate Structure?

When Shoonya funds a portion of your trade, interest is charged on the funded amount from T+1 day until the position is closed.

Shoonya charges are equivalent to 0.049% per day on the funded amount.

Important Checks Before You Trade With MTF

While MTF can increase buying capacity, it also introduces additional obligations and risks.

• Maintain the Required Margin: If the required margin increases or your available margin falls below the required level, you may need to add funds to continue holding the position.
• Interest Continues Until Exit: The funded amount accrues interest from T+1 until the position is closed. The longer the position is held, the higher the total interest cost.
• Margin Requirements May Change: Exchange risk parameters may change, resulting in an increase in the margin required to hold a position during the holding period.
• Risk of Margin Shortfall: A sharp decline in stock prices may reduce available margin, leading to a margin shortfall.
• Positions May Be Liquidated: If margin obligations are not met within the prescribed timeline, positions may be partially or fully liquidated.
• Stock Eligibility Can Change: The approved stock list is reviewed periodically and may change based on exchange and internal risk parameters.
• Funding Limits Apply: Client-level, broker-level, and exchange-level funding limits may affect fresh MTF orders.
• Track Your Positions Regularly: Since MTF involves funding, interest, and margin obligations, users should regularly monitor their positions, margin usage, and account balance to avoid unexpected shortfalls.

What are the Benefits of Shoonya MTF

MTF can help investors manage capital more efficiently while participating in approved stocks.

• Efficient Use of Capital: Allocate funds across multiple opportunities instead of blocking the entire amount in one investment.
• Faster Participation in Opportunities: Enter trades when opportunities arise, without waiting to accumulate full funds.
• Flexibility in Holding Positions: Positions can be carried beyond a single trading session, allowing more time for price movement.
• MTF Calculator for Cost Clarity: Use the Shoonya MTF calculator to estimate required margin, funded amount, daily interest, and approximate carrying cost before placing an order.
• Potential Diversification: Partial upfront funding may allow exposure across multiple stocks instead of concentrating funds in one position.

Who Can Use Shoonya MTF?

You may be eligible to use Shoonya MTF if:

• You have an active Shoonya trading account
• DDPI/POA is enabled
• The selected stock is approved under the MTF list
• Margin and funding requirements are fulfilled

Availability may be subject to internal risk checks and applicable regulations.

Conclusion

Shoonya MTF provides eligible users with a structured way to buy approved stocks without paying the full trade value upfront.

From 1,300+ eligible stocks and up to 2x buying power to a transparent charge structure and app-based access, MTF can help investors manage capital more efficiently while staying aware of costs and margin requirements.