Srinagar, Aug. 28 -- Given here are seven smart tricks to minimize your risk while using the Margin Trading Facility.

Interest cost will attach to an amount borrowed on MTF for every transaction. It is important for every investor to be aware of interest rates and how often these are computed, as well as repayment obligations, before trading. Holding for even very short periods can impact the cost upon exit. The MTF calculator can help in approximating how much interest would apply in other durations and give direction on the terms of the trade duration.

Sharply fluctuating prices in the stock market quickly erode borrowed positions. A stop-loss order will automatically close the position if the price falls to a predetermined level, thu...