Increase your buying power with MTF in HDFC upto 4X!
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The MTF Calculator, provided by Bajaj Broking, is a tool designed to facilitate and make margin trading simpler. This type of trading involves using borrowed funds for transactions. Traders can offer cash or shares as collateral, known as the margin. The MTF Calculator aims to make the process of margin trading more accessible and straightforward for traders.
Ms. Sharma wants to invest Rs. 1 Lakh in stocks, however, she only has Rs. 20,000 available with her now.
There are two scenarios: Investing with her own funds and using a Margin Trading Facility (MTF).
1. Investing with her own funds (without MTF):
Ms. Sharma invests Rs. 20,000 (since she doesn't have the full Rs. 1 Lakh).
If the stocks rise by 10%, her investment becomes Rs. 22,000.
Her profit is Rs. 2,000 (Rs. 22,000 - Rs. 20,000).
2. Investing with MTF:
Ms. Sharma invests Rs. 20,000 of her own money.
Her stockbroker offers her up to 4x leverage (not available on all stocks) and covers the additional Rs. 80,000, allowing a total investment of Rs. 1 Lakh.
The stockbroker charges a 12% annual interest rate on the services, but we’ll consider the cost for just one month. For Rs. 80,000, one month's interest at 1% (12% annual rate divided by 12 months) is Rs. 800.
If the stock price rises by 10%, the total investment is now worth Rs. 1,10,000.
Her gross profit is Rs. 10,000 (Rs. 1,10,000 - Rs. 1,00,000).
After paying the interest of Rs. 800, her net profit is Rs. 9,200.
Comparison of Profits:
Without MTF, her profit is Rs. 2,000.
With MTF, even after paying interest, her profit is Rs. 9,200.
In summary, by using MTF and paying a small amount of interest, Ms. Sharma increases her profit from Rs. 2,000 to Rs. 9,200.
The MTF Calculator is a handy tool for figuring out the costs involved in margin trading. It includes interest on borrowed funds and other necessary charges. Just enter your margin details to get started.
It helps you understand your trading costs easily, taking into account how much you borrow and for how long. It's simpler and more accurate than doing the math yourself.
In India, the SEBI requires clear disclosure of all trading charges. The MTF Calculator makes it easy for traders to see these costs and choose the right broker for their needs. It's a quick, free way to make informed trading decisions.
Bajaj Broking offers two main brokerage packs. These are : Freedom pack and Professional Pack.
Certain features make our brokerage calculator stand out from others. These are its regular updation, user-friendly interface, accessibility through any device easily, free service, and customisable options.
There are different types of brokerage calculator for different market segments. This includes calculators for F&O, equity, currency, and commodity trading.
To compute brokerage, you must enter the purchase and selling price of your shares, and the number of shares purchased.
Yes, we offer one of the lowest brokerage charges, a range of investment services, curated stock baskets, customisable stock filters and a seamless trading platform. It will help you make the most out of your investment/trading experience.
The margin calculator makes use of a formula to determine the margin amount a person needs to deposit to cover the risk associated with a trade. The important factors which this calculator considers are an asset’s current market price, its volatility and the time left till its expiry.
A brokerage calculator helps you compute your brokerage fees, GST, stamp duty, SEBI turnover fee and STT.
Yes, you can use brokerage calculator free of charge. On that note, consider staying away from any website that charges money for brokerage calculations.
An online brokerage for calculator is a lot more helpful for investors than manual calculations. With this, traders can compare brokerage commissions and get instant and accurate results. It is also less time consuming and one can do as many calculations as they want with online brokerage calculators.
The formula to calculate brokerage manually is as follows:
Brokerage= No. of purchased shares/ (sold shares* price of one unit of stocks*brokerage percentage)
Brokerage charges for Freedom Pack are ₹20 per order and ₹10 per order for the Professional Pack. There is no subscription fee for the Freedom Pack for the first year. However, with the Professional Pack, you would have to pay ₹2500.
Intraday brokerage is charged at ₹20 per order (Freedom Pack). Other charges include transaction charges (NSE: 0.00345%), STT (₹25 per lakh on sell side), GST (18% on brokerage, transaction & CM Charges), and SEBI charges (0.00010% of turnover).
Securities Transaction Tax (STT) varies by segment. For intraday trades, it's ₹25 per lakh on the sell side. Delivery trades have ₹100 per lakh on both buy and sell, while options have ₹50 per lakh on premium.
Breakeven points in brokerage calculation depend on brokerage fees (₹20 per order for intraday), transaction charges, STT, SEBI charges, and GST. Traders must calculate their total costs to determine the breakeven price.
SEBI charges in brokerage calculators are applied as 0.00010% of the trade’s turnover across all segments, including delivery, intraday, futures, and options trades. These charges are mandatory and set by the regulator.
Brokerage is charged based on trade value (percentage-based) or per trade (flat rate). Our calculator provides an exact breakdown.
Yes! It’s completely free to use for all traders.
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