Upstox (formerly RKSV Securities), the new-age online discount broking company funded by Ratan Tata, Kalaari Capital and GVK Davix, has introduced Margin Trading Facility (MTF) which can be availed by Upstox customers real-time within seconds., This will enable investors to get instant funding anytime and anywhere to meet their margin requirements while dealing in equities.
With this, Upstox simplifies the cumbersome process for availing MTF by enabling fastest activation in just in 3 clicks. Upstox users can now activate MTF by just the clicking the activate button on their mobile app or web platform, accept terms and conditions and enter OTP received as a final step. Upstox, thus, eliminates the unnecessary red tape subscribing to the MTF service and reduces the time taken to register through instant activation. It is also making the service cheaper by doing away with the hefty subscription fee that the market participants had to cough up earlier and is charging an optimal charge of Rs 20 a day per Rs. 50,000 of funding.
The MTF facility from Upstox will benefit investors who want to buy stocks for a short duration. Positional traders, swing traders and also the investors looking for good leverage on short-term trades can now benefit from this facility. It allows users to get a two-times leverage on buying delivery stocks. They will need to put in 50% of the funds and Upstox would fund the remaining margin requirement, of up to Rs. 5,00,000. The Upstox MTF product will enable these investors and traders to buy more or high-valued stocks and also hold on to their investments, thus increasing their absolute profits.
Elaborating on the reasons for launching the MTF facility, Ravi Kumar, Founder and CEO, Upstox, said: “People often miss out on golden opportunities in the market and are forced to exit their holdings for want of funding, especially in volatile market conditions like in the present. Our recent data has shown that almost 50 per cent of the traders, who buy shares and hold them, sell these shares within just 30 days. With more and more retail investors.
