Margin Trading Facility (MTF) and Margins
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Arrow's RMS policy: Squaring off positions for Margin Trading Facility (MTF)
You can use iRage's Margin Trading Facility (MTF) to trade with borrowed funds. However, iRage may square off your MTF positions under specific…
By when should I add additional margins if I receive a margin call?
iRage sends margin call SMS and email when the margin utilisation exceeds the available balance.
Can exiting one leg of a hedged position lead to a margin shortfall?
Yes, exiting a hedged trade's low-risk leg is a common reason for peak margin shortfall. These shortfalls can occur even if you have closed both legs…
Can I use F&O profits on the same day?
No, your Arrow balance will not reflect intraday profits until the exchange settles them on T+1 day. However, the closing balance on your funds…
Can I use options premium received to open new F&O positions?
When you exit long/buy option positions or enter new write/short options, you can use the proceeds or credit of option premium for only new long/buy…
Can long-dated contracts be traded in Arrow?
The expiries allowed in NRML and MIS for F&O contracts in iRage can be found here. (DOC)
Does Arrow offer lower MTF interest? Cost comparison with other brokers
No, iRage's MTF interest rate is currently fixed at 0.04% per day (approximately 14.6% per annum) with brokerage at ₹20 or 0.3% (whichever is lower)…
Does Arrow provide leverage against the available funds in my trading account?
iRage provides leverage or margin only when you place intraday orders (MIS or CO) based on the prescribed peak margin requirements by SEBI. No…
Does Arrow provide leverage for delivery/carry over positions?
Yes, iRage provides Margin Trading Facility (MTF) to purchase shares for delivery by paying only a portion of the total cost. iRage funds the remaining…
FAQs on Margin Trading Facility - Arrow
See the steps and notes below for Arrow account opening guidance.
How are stocks sold when selling MTF holdings?
When you hold both delivery (CNC) and MTF holdings in the same stock, the system sells your oldest holdings first when you square off any position or…
How is the margin penalty calculated?
The exchange charges a margin penalty when your trading account does not have enough funds to cover the required margin. You must maintain sufficient…
How is the margin penalty calculated?
The exchange charges a margin penalty when your trading account does not have enough funds to cover the required margin. You must maintain sufficient…
How much margin & leverage does Arrow provide?
iRage provides up to 5 times (20% margin) leverage for intraday trading using Margin Intraday Square off (MIS) and Cover Order (CO) for equity. This…
How to buy stocks using Margin Trading Facility on Arrow?
You can buy stocks using MTF if you have DDPI enabled in your Arrow account. To learn more about MTF, check out MTF FAQs.
How to check margin required for F&O trades?
You can find the margin required for your trades through the order window while placing orders or by checking the margin calculator before trading.
How to check the latest margin requirements?
You can check the latest margin requirements on iRage's margin calculator.
How to convert MTF holdings or positions to delivery?
You can convert your MTF holdings to CNC (delivery) from T+1 day onwards. You cannot convert positions from MTF to delivery or CNC on the same day of…
How to find the intraday leverages currently offered for MIS and CO?
Follow the Arrow product flow for: How to find the intraday leverages currently offered for MIS and CO. Start from app.arrow.trade or kyc.arrow.trade…
How to verify if Arrow has passed the margin penalty to the exchange?
iRage does not collect penalties on a client-by-client basis but rather as a collective sum for all clients. Therefore, iRage cannot provide a specific…
How to verify the collateral details reported by Arrow?
As per regulations (WEB), iRage, the clearing member, is required to report the client’s detailed collateral information to the Clearing Corporations…
What are margins and how can margin shortfall occur?
As per regulations, effective from 7 October 2024, iRage credits 100% of the proceeds from selling holdings to your trading account and makes them…
What are the different types of margins charged by the exchange?
The exchange requires a minimum margin for each trade, with specific margins varying by trading segment. Here are the different types of margins you…
What changes due to the new upfront margin requirements?
As per regulations, effective from October 7, 2024, 100% of the proceeds from selling holdings will be credited to the trading account and made…
What does "free cash" mean?
Free cash refers to the balance available in your Arrow account that you can use for placing new trades. The cash margin available also includes any…