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MTF vs Futures & Options_ Which Leverage Tool Should You Choose

Margin Trading Facility (MTF) lets you buy stocks by paying only part of the amount upfront, while Futures & Options (F&O) allow trading contracts with margin and higher risk-reward potential. MTF is better for long-term investors seeking delivery with leverage, whereas F&O suits active traders aiming for short-term gains. Your choice depends on risk appetite, time horizon, and trading style.

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MTF vs Futures & Options_ Which Leverage Tool Should You Choose

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  1. Read blog - https://navia.co.in/margin-trade-funding MTF vs Futures & Options: Which Leverage Tool Should You Choose?

  2. What is Margin Trading Facility (MTF)? Read blog - https://navia.co.in/margin-trade-funding • Broker lends money so you can buy more shares than your cash allows. • You pay a small margin upfront, rest is funded by broker. • Mostly for delivery-based investing (holding stocks longer). • Interest is charged on borrowed amount.

  3. Read blog - https://navia.co.in/margin-trade-funding What are Futures & Options (F&O)? • Futures: Agreement to buy/sell an asset at a fixed price in future. • Options: Right (not obligation) to buy/sell at a set price before expiry. • Used for short-term trading, hedging, or speculation. • No interest, but contracts have expiry and high risk if misused.

  4. Key Differences Read blog - https://navia.co.in/margin-trade-funding • MTF → Longer holding, pay interest, good for investors. • F&O → Short-term, expiry-driven, higher risk/reward, suited for traders. • MTF is like a loan to buy stocks. • F&O is like a bet on price movements with leverage.

  5. Which Should You Choose? Read blog - https://navia.co.in/margin-trade-funding • Pick MTF if: you want to hold quality stocks longer but need extra funds. • Pick F&O if: you’re an active trader, comfortable with high risk and quick decisions. • Beginners → Start with MTF. • Experienced traders → Can explore F&O.

  6. Disclaimer Investment in securities market are subject to market risks, read all the related documents carefully before investing. The securities quoted are for illustrative purposes and are not intended as recommendations. Brokerage will not exceed the SEBI prescribed limit. Navia Markets Ltd ,SEBI Registration No.INZ000095034-NSE Member code for CM, FAO & CD: 07708 - BSE Clearing No. for CM, FAO & CD: 6341-MCX Member ID: 45345 NSDL DP ID: IN300378-CDSL DP ID: 12086500-SEBI Registration No. for DP: IN-DP-311-2017-GST Registration number :33AAACM4739R2ZZ-Registered office: Ganga Griha, 4th & 5th Floor, No.9, Nungambakkam High Road, Chennai - 600 034 Email ID: ig@navia.co.in - Contact No: +91 70100 75500 https://bit.ly/naviadisclaimer Read blog - https://navia.co.in/margin-trade-funding

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