New Delhi, Oct. 5 -- At times, traders may see an opportunity but do not have enough funds to take the full position. Margin Trading Facility (MTF) provides an option in such cases. The investor pays a portion of the purchase value, and the broker finances the balance.

The cost of using MTF varies from one broker to another. Some charge a percentage on the funded amount, while others use a daily or slab-based structure. That is why looking at the interest rate alone may not give the full picture. This article compares MTF charges across brokers and looks at the other costs traders should check before choosing one broker to open a demat account with.

In MTF, the amount funded by the broker acts like a loan. So, MTF charges involve costs ...