Last June, SEBI has issued a comprehensive framework on Margin Trading Facility (MTF) - the facility will essentially enhance the liquidity in the capital markets. It will also improve the convenience of borrowing capital for the short term and enable traders to make better use of trading opportunities.

Hence, the question is – how does Margin Trading work?

The process is fairly simple. A margin account provides you the resources to buy more quantities of a stock than you can afford at any point of time. At Edelweiss, you can access our unique Margin Trading Facility to buy up to 4 times the value of shares with the existing resources at hand – Cash and Cash equivalent (Stocks Collateral). This facility allows you to hold the stocks for a longer period subject to minimum margin requirements.

Most importantly, the value of stocks purchased by you using Margin Trading over and above the cash available in your trading account is funded by us – Edelweiss Broking Limited. This facility thus ensures that you do not miss an opportunity in the market due to lack of funds.

Features of Margin Trade Funding:

For any doubt on the Margin Trading Facility visit our website