{"id":6793,"date":"2026-07-07T11:42:18","date_gmt":"2026-07-07T11:42:18","guid":{"rendered":"https:\/\/www.paytmmoney.com\/blog\/?p=6793"},"modified":"2026-07-07T13:55:07","modified_gmt":"2026-07-07T13:55:07","slug":"how-to-place-an-mtf-order-guide","status":"publish","type":"post","link":"https:\/\/www.paytmmoney.com\/blog\/how-to-place-an-mtf-order-guide\/","title":{"rendered":"How to Place an MTF Order: A Step-by-Step Guide to Margin Trading"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">Margin Trading Facility (MTF), frequently referred to as &#8220;Buy Now, Pay Later for Stocks,&#8221; is an exchange-approved mechanism that allows investors to boost their stock market purchasing power by up to 4x.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">It allows you to buy stocks by paying just a fraction of the total value upfront. The broker lends you the rest of the money, charging a small daily interest on the borrowed amount.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Essentially, you pay a fraction of the total trade value upfront (as low as 25%), and your broker funds the remaining amount as a low-cost loan. This means if you have \u20b925,000 in your trading account, MTF empowers you to buy eligible stocks worth up to \u20b91,00,000. It is a powerful financial tool designed to act as a force multiplier for your portfolio, making it easier to capture medium-term market opportunities without locking up your entire available capital.<\/span><\/p>\n<h2><b>Pre-Requisites: What You Need Before Placing an MTF Order<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">To ensure a smooth and seamless experience when you place an MTF order, make sure you have the following in place:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>An Active Trading Account:<\/b><span style=\"font-weight: 400;\"> Ensure your trading and Demat account is fully active and KYC compliant. Paytm Money provides a free Demat a\/c with zero account opening fees and zero Account Maintenance Charges(AMC).<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Available Margin:<\/b><span style=\"font-weight: 400;\"> You need the upfront margin (at least 25% depending on the specific stock&#8217;s volatility). This can be in the form of a cash balance in your trading ledger or collateral margin obtained by pledging existing stocks.<\/span><\/li>\n<\/ul>\n<div style=\"border: 1px solid #ddd; border-radius: 8px; padding: 20px; margin: 20px 0;\">\n<h3 style=\"margin-top: 0;\">Margin Pledge<\/h3>\n<p style=\"margin-bottom: 0;\">Margin Pledge is a process that allows you to use the existing shares in your investment account as collateral to receive additional trading margin, without having to sell those shares.<\/p>\n<\/div>\n<h2><a href=\"http:\/\/Video:%20https:\/\/www.youtube.com\/watch?v=oYyQlWUJcEA\">How to Make Your First MTF Trade on Paytm Money<\/a><\/h2>\n<p><iframe title=\"How to Make Your First MTF Trade on Paytm Money | Step-by-Step Guide\" width=\"500\" height=\"281\" src=\"https:\/\/www.youtube.com\/embed\/oYyQlWUJcEA?feature=oembed&#038;enablejsapi=1&#038;origin=https:\/\/www.paytmmoney.com\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe><\/p>\n<h2><b>Step-by-Step Guide: How to Place an MTF Order on Paytm Money<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Now, let us get to the core of the matter. Learning how to place an MTF order on the Paytm Money app is straightforward, intuitive, and user-friendly. Please follow these steps:<\/span><\/p>\n<h3><b>Step 1: Navigate to the Stock<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Open your Paytm Money app and navigate to the &#8216;Stocks&#8217; or &#8216;Portfolio&#8217; tab. Use the search bar to find the specific stock you wish to invest in. MTF is available on a broad universe of 1,400+ selected stocks.<\/span><\/p>\n<h3><b>Step 2: Open the Order Pad<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Once you are on the stock&#8217;s company page (where you can see the price charts and fundamentals), click on the &#8220;Buy&#8221; button at the bottom of the screen. This action will open the Order Pad, which is your main command centre for executing trades.<\/span><\/p>\n<h3><b>Step 3: Choose the &#8220;MTF-Pay Later&#8221; Option<\/b><\/h3>\n<p>At the top of the Order Pad, you will see different product types such as Delivery and Intraday. Look for and explicitly select the MTF-Pay Later option. Selecting this is the most crucial part of how to place an MTF order, as it tells the system that you want to use margin funding for this specific trade rather than paying the full amount in cash.<\/p>\n<h3><b>Step 4: Enter Quantity and Review Funding Details<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Input the number of shares you wish to purchase. As you enter the quantity, the app interface will dynamically calculate and display the margin required from your end, as well as the exact amount that will be funded by the broker. Review these details carefully to ensure you have enough upfront margin available in your account.<\/span><\/p>\n<h3><b>Step 5: Execute the Order<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">After verifying the quantities, price limits (if placing a limit order), and funding amounts, simply swipe or click to execute the buy order. Your order will instantly be sent to the exchange for execution.<\/span><\/p>\n<h3><b>Step 6: Margin Pledge\u00a0<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">At the end of the trading day, any stock bought under the MTF category must be pledged in favour of the broker to secure the loan. This process happens automatically on Paytm Money.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Learn more about <\/span><a href=\"https:\/\/www.paytmmoney.com\/blog\/margin-pledge-meaning-process-authentication\/\"><span style=\"font-weight: 400;\"><span style=\"color: #00b0ff; font-weight: 600;\">Margin Pledge<\/span><\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/p>\n<div style=\"border: 1px solid #ddd; border-radius: 8px; padding: 20px; margin: 20px 0;\">\n<h3 style=\"margin-top: 0;\">Square-Off<\/h3>\n<p style=\"margin-bottom: 0;\">Square-Off is the process of closing an open trading position by selling the purchased shares. If the broker closes the position automatically due to insufficient margin or failure to complete the margin pledge process, it is known as an auto-square-off.<\/p>\n<\/div>\n<h2><b>Why Should You Use Paytm Money MTF for Your Trades?<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">When you learn how to place an MTF order, you unlock several key benefits for your trading journey:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>High Leverage:<\/b><span style=\"font-weight: 400;\"> You gain up to 4x buying power on your available funds, amplifying your exposure to high-conviction trades.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Broad Universe of Stocks:<\/b><span style=\"font-weight: 400;\"> MTF isn&#8217;t restricted to just a handful of companies. On Paytm Money, MTF is available on over 1,400+ eligible stocks across various sectors.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Long Holding Period:<\/b><span style=\"font-weight: 400;\"> Unlike intraday trading, where you must square off your position before the market closes on the same day, MTF allows you to hold your positions for up to 365 calendar days (provided you maintain the required margin cover).<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Cashless Trading:<\/b><span style=\"font-weight: 400;\"> You do not necessarily need fresh cash in your bank account to trade. You can pledge your existing eligible Demat holdings to get collateral margin and use that to fund your 25% upfront MTF requirement.<\/span><\/li>\n<\/ul>\n<h2><b>Cost of Funding: Paytm Money\u2019s Transparent Structure<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Before you execute a trade and figure out how to place an MTF order, you must be fully aware of the costs involved. Paytm Money offers competitive MTF interest structures, which significantly lower the break-even point for positional and swing traders.<\/span><\/p>\n<ul>\n<li><b>Interest Rates:<\/b><span style=\"font-weight: 400;\"> The interest rate is tiered based on your MTF book size.\u00a0<\/span><\/li>\n<\/ul>\n<div class=\"wp-block-table\" style=\"width: 100%; border: 1px solid #000000; margin-bottom: 20px;\">\n<table style=\"width: 100%; border-collapse: collapse; font-family: Arial, sans-serif; font-size: 15px; color: #000000; background-color: #ffffff;\">\n<thead>\n<tr style=\"border-bottom: 2px solid #000000;\">\n<th style=\"padding: 12px; border: 1px solid #000000; text-align: left; font-weight: bold; background-color: #ffffff; width: 50%;\">MTF Book Size<\/th>\n<th style=\"padding: 12px; border: 1px solid #000000; text-align: left; font-weight: bold; background-color: #ffffff;\">Annual Interest Rate<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td style=\"padding: 10px; border: 1px solid #000000; font-weight: bold;\">Up to \u20b91 Lakh<\/td>\n<td style=\"padding: 10px; border: 1px solid #000000;\">7.99% p.a.<\/td>\n<\/tr>\n<tr>\n<td style=\"padding: 10px; border: 1px solid #000000; font-weight: bold;\">\u20b91 Lakh to \u20b91 Crore<\/td>\n<td style=\"padding: 10px; border: 1px solid #000000;\">9.99% p.a.<\/td>\n<\/tr>\n<tr>\n<td style=\"padding: 10px; border: 1px solid #000000; font-weight: bold;\">Above \u20b91 Crore<\/td>\n<td style=\"padding: 10px; border: 1px solid #000000;\">8.99% p.a.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Daily Calculation:<\/b><span style=\"font-weight: 400;\"> Interest is calculated daily and applied pro-rata strictly on the broker-funded amount, not the total trade value. For example, borrowing \u20b975,000 at 7.99% p.a. costs roughly \u20b916.42 per day.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Brokerage &amp; Charges:<\/b><span style=\"font-weight: 400;\"> The brokerage is standard at 0.1% of the trade value or the current brokerage up to \u20b920 (whichever is higher). Standard pledge\/unpledge fees of \u20b920 per transaction (which includes a \u20b95 CDSL charge) and standard DP charges apply.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Check <\/span><a href=\"https:\/\/www.paytmmoney.com\/stocks\/pricing\"><span style=\"font-weight: 400;\"><span style=\"color: #00b0ff; font-weight: 600;\">Paytm Money Pricing<\/span><\/span><\/a><span style=\"font-weight: 400;\"> for more details.<\/span><\/p>\n<h2><b>Conclusion<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Mastering how to place an MTF order is a significant step forward in your overall investing journey. It allows you to transition from a casual market participant to a strategic trader who knows exactly how to make capital work efficiently. By understanding the core mechanics, leveraging smart tools like the <\/span><a href=\"https:\/\/www.paytmmoney.com\/mtf\/calculator\"><span style=\"font-weight: 400;\"><span style=\"color: #00b0ff; font-weight: 600;\">MTF Calculator<\/span><\/span><\/a><span style=\"font-weight: 400;\">, and managing your risks prudently, you can use the Margin Trading Facility to capitalize on high-conviction market opportunities without disturbing your core, long-term portfolio. The market is full of potential. With the right strategy and tools, you are now better equipped to seize those opportunities.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-size: 10pt;\"><b><i>Disclaimer:\u00a0<\/i><\/b><i>Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. This content is purely for informational purposes only and should not be considered as investment advice or a recommendation. Securities quoted are for illustration purposes only and not recommendatory. Investors are requested to do their own due diligence before investing.<\/i><\/span><\/p>\n<p><span style=\"font-size: 10pt;\"><i>Paytm Money Ltd. SEBI Reg. No. Broking \u2013 INZ000240532; Depository Participant \u2013 IN \u2013 DP \u2013 416 \u2013 2019, Depository Participant Number: CDSL \u2013 12088800. Trading and clearing member of NSE (90165, M52073), BSE (6707), MCX (57525), NCDEX (1315, M51110), and MSEI (85300). SEBI Reg. No. Research Analyst \u2013 INH000020086. Regd. Office: 136, 1st Floor, Devika Tower, Nehru Place, Delhi \u2013 110019. For complete Terms &amp; Conditions and Disclaimers visit:\u00a0<\/i><a href=\"https:\/\/www.paytmmoney.com\/stocks\/policies\/terms\"><i>https:\/\/www.paytmmoney.com\/stocks\/policies\/terms<\/i><\/a><i>\u00a0<\/i><\/span><\/p>\n<h2 id=\"toc-heading-12\">FAQs<\/h2>\n<div style=\"max-width: 100%; margin: 20px 0; font-family: -apple-system, BlinkMacSystemFont, 'Segoe UI', Roboto, Oxygen-Sans, Ubuntu, Cantarell, 'Helvetica Neue', sans-serif;\">\n<style>\n        \/* Hides default browser arrow\/triangle for a clean professional look *\/<br \/>        summary::-webkit-details-marker { display: none; }<br \/>        summary { list-style: none; outline: none; }<br \/>    <\/style>\n<details style=\"border-bottom: 1px solid #e2e8f0; padding: 15px 0; cursor: pointer;\">\n<summary style=\"display: flex; justify-content: space-between; align-items: center; width: 100%;\"><span style=\"font-weight: 600; color: #1a202c; font-size: 18px; text-align: left;\">1. What happens if I forget to pledge my shares after placing an MTF order?<\/span><br \/>\n<span style=\"font-size: 24px; color: #007bff; margin-left: 10px;\">+<\/span><\/summary>\n<div style=\"padding-top: 10px; color: #4a5568; line-height: 1.6; text-align: left;\">On the Paytm Money platform, shares purchased under the Margin Trading Facility (MTF) are automatically pledged at the end of the trading day, eliminating the need for manual intervention.<\/div>\n<\/details>\n<details style=\"border-bottom: 1px solid #e2e8f0; padding: 15px 0; cursor: pointer;\">\n<summary style=\"display: flex; justify-content: space-between; align-items: center; width: 100%;\"><span style=\"font-weight: 600; color: #1a202c; font-size: 18px; text-align: left;\">2. Can I use my existing portfolio shares to get margin for an MTF trade?<\/span><br \/>\n<span style=\"font-size: 24px; color: #007bff; margin-left: 10px;\">+<\/span><\/summary>\n<div style=\"padding-top: 10px; color: #4a5568; line-height: 1.6; text-align: left;\">Yes, absolutely. You do not necessarily need fresh bank cash to trade. You can pledge your existing eligible Demat holdings to receive collateral margin (after a standard exchange haircut) and use that margin to fulfill the 25% upfront requirement for your new MTF order.<\/div>\n<\/details>\n<details style=\"border-bottom: 1px solid #e2e8f0; padding: 15px 0; cursor: pointer;\">\n<summary style=\"display: flex; justify-content: space-between; align-items: center; width: 100%;\"><span style=\"font-weight: 600; color: #1a202c; font-size: 18px; text-align: left;\">3. How exactly is the interest on my MTF position calculated?<\/span><br \/>\n<span style=\"font-size: 24px; color: #007bff; margin-left: 10px;\">+<\/span><\/summary>\n<div style=\"padding-top: 10px; color: #4a5568; line-height: 1.6; text-align: left;\">Interest is charged daily and applied pro-rata strictly on the amount funded by the broker, not on the total trade value. For example, if you buy stocks worth \u20b91 Lakh and pay \u20b925,000 upfront, the daily interest is only calculated on the \u20b975,000 that the broker lent you.<\/div>\n<\/details>\n<details style=\"border-bottom: 1px solid #e2e8f0; padding: 15px 0; cursor: pointer;\">\n<summary style=\"display: flex; justify-content: space-between; align-items: center; width: 100%;\"><span style=\"font-weight: 600; color: #1a202c; font-size: 18px; text-align: left;\">4. How long can I hold a stock bought using the Margin Trading Facility?<\/span><br \/>\n<span style=\"font-size: 24px; color: #007bff; margin-left: 10px;\">+<\/span><\/summary>\n<div style=\"padding-top: 10px; color: #4a5568; line-height: 1.6; text-align: left;\">You can hold your MTF positions for a maximum of 365 calendar days. However, this extended holding period is strictly subject to you maintaining the required margin cover at all times to avoid triggering a margin call.<\/div>\n<\/details>\n<details style=\"border-bottom: 1px solid #e2e8f0; padding: 15px 0; cursor: pointer;\">\n<summary style=\"display: flex; justify-content: space-between; align-items: center; width: 100%;\"><span style=\"font-weight: 600; color: #1a202c; font-size: 18px; text-align: left;\">5. Can a stock that is already pledged for MTF be pledged again?<\/span><br \/>\n<span style=\"font-size: 24px; color: #007bff; margin-left: 10px;\">+<\/span><\/summary>\n<div style=\"padding-top: 10px; color: #4a5568; line-height: 1.6; text-align: left;\">No. According to financial regulations, a stock that has already been pledged specifically to secure an MTF position cannot be pledged again to generate additional collateral margin for other trades.<\/div>\n<\/details>\n<details style=\"border-bottom: 1px solid #e2e8f0; padding: 15px 0; cursor: pointer;\">\n<summary style=\"display: flex; justify-content: space-between; align-items: center; width: 100%;\"><span style=\"font-weight: 600; color: #1a202c; font-size: 18px; text-align: left;\">6. Is MTF a suitable strategy for long-term investing?<\/span><br \/>\n<span style=\"font-size: 24px; color: #007bff; margin-left: 10px;\">+<\/span><\/summary>\n<div style=\"padding-top: 10px; color: #4a5568; line-height: 1.6; text-align: left;\">Generally, MTF is best suited for short-to-medium-term opportunities (like swing trading or positional trading) where you expect a sharp price movement. Because interest accrues daily, holding leveraged positions for several years (long-term investing) can slowly erode your overall profits due to the compounding cost of borrowing.<\/div>\n<\/details>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Margin Trading Facility (MTF), frequently referred to as &#8220;Buy Now, Pay Later for Stocks,&#8221; is an exchange-approved mechanism that allows investors to boost their stock market purchasing power by up to 4x. It allows you to buy stocks by paying just a fraction of the total value upfront. The broker lends you the rest of<a href=\"https:\/\/www.paytmmoney.com\/blog\/how-to-place-an-mtf-order-guide\/\">Continue reading <span class=\"sr-only\">&#8220;How to Place an MTF Order: A Step-by-Step Guide to Margin Trading&#8221;<\/span><\/a><\/p>\n","protected":false},"author":53,"featured_media":6794,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[342],"tags":[2198,754,521,520,2196,2195,2197],"class_list":["post-6793","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-mtf-blog","tag-how-to-place-an-mtf-order","tag-margin-pledge","tag-margin-trading-facility","tag-mtf-calculator","tag-mtf-order-process","tag-mtf-trading-steps","tag-stock-market-leverage-guide"],"_links":{"self":[{"href":"https:\/\/www.paytmmoney.com\/blog\/wp-json\/wp\/v2\/posts\/6793","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.paytmmoney.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.paytmmoney.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.paytmmoney.com\/blog\/wp-json\/wp\/v2\/users\/53"}],"replies":[{"embeddable":true,"href":"https:\/\/www.paytmmoney.com\/blog\/wp-json\/wp\/v2\/comments?post=6793"}],"version-history":[{"count":0,"href":"https:\/\/www.paytmmoney.com\/blog\/wp-json\/wp\/v2\/posts\/6793\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.paytmmoney.com\/blog\/wp-json\/wp\/v2\/media\/6794"}],"wp:attachment":[{"href":"https:\/\/www.paytmmoney.com\/blog\/wp-json\/wp\/v2\/media?parent=6793"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.paytmmoney.com\/blog\/wp-json\/wp\/v2\/categories?post=6793"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.paytmmoney.com\/blog\/wp-json\/wp\/v2\/tags?post=6793"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}