HDFC Securities MTF Review

• Buy stocks or ETFs now and pay anytime within 275 days. Just agree to the terms and conditions when placing a BSPL order on our web or mobile trading platforms.
• Boost your buying power and potential returns by paying only a small portion of the stock or ETF value upfront.
• Increase your profit potential by extending the investment period.
• An interest of about 0.05% per day (18% per year, up to 24% if applicable) is charged on the unpaid amount until you settle your position.
• Get higher leverage to take advantage of short-term market changes.

1. Log in to your HDFC Securities account.
2. Select Buy > exchange > stock/ETF.
3. Choose the "E-margin" product.
4. Enter quantity and price.
5. Check margins using "Know your Margin."
6. Place the order.
7. Track positions in the order book.
8. Square off via Open Positions before the deadline.
9. Monitor margins regularly to avoid forced square-offs.

Important Terms, Conditions and Risks:

• Eligibility & discretion: MTF/E-Margin is offered only to clients meeting SEBI, exchange and HDFC Securities’ internal criteria. The broker may approve, restrict or withdraw the facility anytime without prior notice.
• Limited scrip list: Only SEBI-eligible stocks approved by HDFC Securities are allowed. The list may change anytime, and removal of a stock may require funding or a position square-off.
• Margin calls & square-off: Additional margin may be demanded based on volatility or risk. Failure to meet margin requirements can lead to partial/full square-off or collateral liquidation without prior intimation.
• Exposure limits: Client exposure is capped at 10% of the broker’s total allowable MTF exposure. Orders beyond limits may be rejected or partially executed.
• Collateral revaluation: Pledged/bought stocks are revalued regularly. Price declines may create margin shortfalls requiring immediate funding.
• Leverage risk: Leverage can boost gains but also magnifies losses, potentially eroding capital faster than delivery trades.

HDFC Securities MTF – How It Works?

BSPL (Buy Stocks Pay Later) is available only in equity segment not in F&O segment.

Example: You buy 50 shares of XYZ @ ₹1,800 on Tuesday under BSPL. You have the option to square off the position anytime or convert it into delivery up to T+275 days or as applicable (i.e., 275 trading days). If the position is not squared off before 2:45 PM on the T+275 day or as applicable, it will be squared off by HDFC Securities. However, Mark to Market (MTM) losses on open BSPL positions, if any, must be paid on a daily basis.

Who Should Consider HDFC Securities MTF?

HDFC Securities MTF is suitable for investors who:

• Want to build or scale positions in approved stocks and ETFs using partial capital, and are comfortable with leverage and associated risks.
• Prefer longer holding flexibility (up to T+275 days) compared to pure intraday margin products, while accepting daily mark‑to‑market, interest costs, and the possibility of margin calls.

It is less suitable for very conservative investors who do not wish to borrow to invest or who cannot actively monitor positions and margins on a regular basis. Before using MTF, clients should read the detailed E‑Margin / MTF terms, conditions and disclaimers provided on the HDFC Securities website and accept them on the platform.

Pros:

• Higher buying power: Buy up to ~4× your capital.
• Extended holding period: Carry positions up to T+275 trading days.
• Higher return potential: Larger exposure can boost ROI.
• Lower upfront payment: Pay margin now, balance later.

Cons:

• Leverage risk: Losses are magnified in falling markets.
• Interest cost: ~0.05% per day on funded amount reduces net returns.
• Margin calls & square-off: Shortfall can trigger forced sell.

HDFC Securities’ Margin Trading Facility (BSPL) is designed for investors who want to enhance their market exposure by using leverage while paying only a portion of the trade value upfront. With funding available for up to T+275 trading days and leverage of around 4×, it can help investors capitalize on short- to medium-term opportunities and potentially improve returns.

Read more about HDFC Securities

Useful Links