Amplify Your Gains: Aman’s MTF Journey with 3x Leverage

Introduction: Aman’s Curiosity About MTF

One afternoon, Aman, a junior colleague at Ravi’s firm, approached Ravi looking visibly troubled. “Ravi, I’ve been thinking about investing in the stock market,” Aman began hesitantly. “I’ve heard about this Margin Trading Facility (MTF) thing. Can you tell me more about it?”

Understanding Margin Trading Facility (MTF)

Ravi, a seasoned investor, smiled reassuringly. “Sure, Aman. MTF is essentially like getting a loan from your broker to buy stocks. You don’t have to put up the entire amount upfront—it’s like getting a boost to your buying power.”

“So, it’s like borrowing money to invest?” Aman asked, his eyes widening.

“Exactly,” Ravi replied. “But there’s a catch. If the stock price goes down, your losses can be amplified as well. It’s a double-edged sword.”

Ravi’s Explanation: How MTF Works with Navia

“That sounds risky,” Aman said, his concern growing.

“It can be,” Ravi admitted. “But if you’re confident in your stock picks, it can also be a great way to increase your returns. Recently, I used MTF to buy a stock I was really bullish on.”

“How did it go?” Aman asked eagerly.

“It worked out great,” Ravi said, a satisfied smile on his face. “The stock went up, and I made a decent profit. The best part was that I used my nCoins to waive off the interest on the loan, so I kept almost all of the gains.”

“nCoins?” Aman asked, intrigued.

“Yeah,” Ravi explained, “they’re digital points you earn for trading with Navia. You can use them for various things, like waiving off interest or charges.”

Key Benefits of Using MTF with Navia

“That’s pretty cool,” Aman said, visibly impressed. “But tell me more about MTF with Navia. Why should I consider it?”

Ravi was happy to elaborate. “There are some great benefits when you use MTF with Navia. First, there’s no rush to sell your MTF stocks—you can hold them for as long as you want. You only sell when you’re ready. Plus, Navia offers margin funding exposure where up to 66% of the margin is funded by them. That’s a huge boost to your buying power.”

Aman nodded, clearly interested.

“And it gets better,” Ravi continued. “Navia has over 1,000 scrips available for trading and investing through MTF, giving you plenty of options to diversify your portfolio. The whole process is integrated into the existing order placement flow, so it’s simple and easy. You don’t need to learn anything new—just select MTF when placing your order.”

“That sounds really convenient,” Aman commented.

“It is,” Ravi said. “Navia even provides a dedicated MTF section in your holdings, so you can easily track the shares you’ve bought through MTF. And when it’s time to sell, you can do it instantly from the MTF order screen without needing to go through the hassle of un-pledging first.”

“That definitely simplifies things,” Aman said, feeling more confident.

“Also, with Navia, you get interest-free funding for up to T+2 days. This means you can use 3X margins until the settlement day without paying any interest. And if you buy multiple lots of the same scrip, the MTF pledge charge is only applied once, no matter how many orders you place. That’s a great way to save on costs.”

“That’s really helpful,” Aman said, now fully engaged in the conversation.

“And the pledge process itself is easy,” Ravi added. “You can pledge your holdings to get MTF benefits without any complications. Navia is transparent—there are no hidden charges. You can see all the fees upfront, so there are no surprises.”

“That’s reassuring,” Aman said with a nod.

“And the best part?” Ravi concluded, “If you’re a Rocket Plus user, MTF is already active for you. It’s visible for all tradeable scrips on the order window, so you don’t need to do anything extra to start using it.”

Ravi’s Real-Life Example: Amplifying Returns with MTF

Aman smiled, clearly impressed by what he had learned. “Thanks, Ravi. This makes MTF with Navia sound like a really powerful tool for investing. I’ll definitely consider it.”

Seeing Aman’s growing interest, Ravi decided to share a real-life example to illustrate the potential of MTF.

“Let me give you a quick example to show you how powerful MTF can be,” Ravi said. “Imagine you want to buy a stock priced at Rs. 100, expecting it to rise to Rs. 105 in two weeks. This would normally give you a 5% return on your investment, right?”

“Right,” Aman nodded.

“Now, if you opt for MTF, you don’t need to put up the entire Rs. 100. Instead, you only need to bring in Rs. 33, and Navia funds the remaining Rs. 67. So, when the stock hits Rs. 105, you’ve made Rs. 5 on just Rs. 33—your return is no longer 5%, but a whopping 15.15% in just two weeks.”

“Wow, that’s impressive,” Aman said, his interest piqued.

“And it doesn’t stop there,” Ravi continued. “The interest you’d pay on the Rs. 67 loan at 18% for those two weeks would be just Rs. 0.41. So your net profit would be Rs. 4.59, which still gives you a 13.90% return. Compare that to the 5% you would have made without using MTF. The cost of funding is only 8.2% of your profit, meaning you keep 92% of your gains.”

Aman’s eyes widened as he processed this information. “So, with MTF, I’m essentially amplifying my returns significantly?”

“Exactly,” Ravi affirmed. “MTF isn’t just about increasing your buying power—it’s about maximizing your potential returns while managing your risks. It’s like a return accelerator that lets you capitalize on opportunities that you might otherwise miss.”

As Aman pondered this, the power of MTF became clear—it’s not just about leverage; it’s about smart investing.

Conclusion: Start Your MTF Journey Today

Just like how Ravi guided Aman to start with Margin Trading Facility (MTF) and unlock its potential, you too can take your first step into this powerful investment tool. Whether you’re looking to amplify your buying power or explore new opportunities in the stock market, MTF with Navia offers the flexibility, transparency, and benefits to help you maximize your returns. Start your journey today, just like Ravi and Aman did, and see how MTF can enhance your investing experience.

Happy Trading!

DISCLAIMER: Investments in the securities market are subject to market risks, read all the related documents carefully before investing. The securities quoted are exemplary and are not recommendatory. Brokerage will not exceed the SEBI prescribed limit.