But the mechanics of margin trading facilities (MTF) carry risks that are easy to underestimate. The upfront portion, or initial margin, can be met with cash or by pledging shares already held in a demat account. Investors effectively own the shares, but the position carries an interest cost for as long as it is held. Maximum lending varies by investor, stock and broker risk policies, and access requires explicit opt-in through a broker's platform. For a ₹1 lakh position, this translates to an upfront investment of ₹20,000-50,000, with the broker funding the rest.

Source: Mint March 23, 2026 03:03 UTC