How Much Margins Leverage Does Dhan Provide?

The Margin is the amount of collateral or money, that an investor must deposit with their stockbroker or exchange to cover the risk the holder takes on the broker’s or exchange’s behalf.  

Brokers provide leverage, which is a loan that enables traders to take on larger bets with less capital. Margin Trading Facility (MTF) is the name given to this feature or just margin funding. Many times, leverage is shown as a multiple, such as 2x, 3x, 4x, and so forth. For example, if you acquire 4x leverage on a trade of ₹1,00,000, the broker would pay the remaining ₹75,000, and you will pay ₹25,000.

The margin requirements for each order are shown on the order placement screen before you place an order on Dhan. Additionally, every script on the Dhan app or website has a margins area where you may view them.

You can place an MTF Order in a few steps given below:

Step 1: Choose “MTF” on the Order Screen of the Dhan app.

Step 2: Tap on the “Buy with MTF” option.

Step 3: Go to the “Positions” Screen.

Step 4: Authorize MTF Order before 9 PM (same day).

Step 5: You can view the MTF Portfolio Separately.