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NSE Dominates MTF Market with 97% Share
12 Dec
Summary
- MTF book grew to ₹1.15 lakh crore by November 2025.
- National Stock Exchange holds 97% of MTF financing.
- Margin trading suits experienced traders and short-term investors.
The Margin Trading Facility (MTF) market has experienced significant growth, with the MTF book expanding to ₹1.15 lakh crore by November 2025. This expansion reflects strong market confidence and sustained investor interest. The National Stock Exchange leads this segment, commanding approximately 97% of the total MTF financing, underscoring its dominant position in the market.
MTF allows investors to purchase stocks by funding only a portion of the value, with brokers providing the remainder, for which an interest is charged. While advantageous during bull markets for leveraging price increases, MTF poses substantial risks in volatile or bearish conditions, potentially leading to significant losses. Brokers implement trigger prices to automatically square off positions if market conditions deteriorate, protecting both parties from further losses.
This financial instrument is best suited for experienced traders and short-term investors capable of navigating market volatility and capitalizing on quick price movements. Beginners and risk-averse long-term investors are advised to avoid MTF. Brokers are encouraged to carefully assess client capabilities before offering this facility to maintain market stability.
