Digital platforms are democratizing leveraged trading, making it essential for investors to understand the risks and strategies involved in Margin Trading Facility (MTF).
The Indian equity market is undergoing significant changes, with a shift to digital and an influx of new retail investors, driving demand for advanced financial instruments like MTF.
MTF is a form of financial leverage that enables investors to purchase a higher value of shares than they can afford with their own money, with the remainder covered by a short-term loan from the broker.
MTF allows investors to purchase a higher value of shares than they can get with their own money.
Author's summary: MTF is a powerful investing tool with essential risk mitigation strategies.