Hello, please answer this query i have regarding MTF
if i have 10 lakh cash in account, and i want to slowly build leverage over the next 3 days, i start buying in mtf. for example, say i buy 2 lakh quantity of stock A, using mtf, by paying only 50k
next day, i should have 9.5 lakh as remaining balance, instead all of 2 lakh gets deducted and mtf does not get applied
when i talked to customer care person, i was informed that mtf cannot be used as long as i have free cash in my account, and i can only use it once my cash runs out
problem is, in that way, i can only build very very little amount of leverage, since most of my cash would already be utilized in holdings
is this how it is supposed to work? on other platforms, mtf can be used right from the begining even though you have cash remaining
Hi @aarki While we look ask the team to look into the issue, could you please help us with your client ID?
CLIENT ID - A51501728
Hi @aarki The answer given by customer care is correct, as of now, according to the process, as long as user has free cash, MTF gets converted to quantity. However, the team is working on building another feature where you will have the option to choose to keep MTF along with the free cash, this will be updated soon, we’ll let you know once this is available in the web and app platform. Customers can pledge the stocks converted to delivery from MTF and get collateral, which can be used to buy stocks in Margin.
thank you for confirmation, do you have any rough timeline by which this new feature will be released?
pledging can only be done after t+2 , so i buy stocks today and tomorrow if i want to use mtf, i cannot, since stock wont be in holdings to pledge
Hi @aarki yes, that is correct but the team hasn’t shared any timeline on this but since the team has been working on it, you shall see the update soon. We’ll keep you posted.