How Much Margins Leverage Does Yes Securities Provide?
Margin Trading Facility (MTF) is a product approved by the exchange that allows individuals to buy stocks while paying only the initial margin, with Yes Securities funding the rest. One is allowed to keep the position for as long as it takes them or alternatively, they may choose to have the stock delivered to them.
You can maintain an equity cash delivery position by providing a margin, which can be in the form of stocks or cash. Its key advantages are:
- You get up to 4x leverage
- Extended holding period
While purchasing shares, only a portion of the price would be demanded since YES Securities India Limited provides funding for the bought shares.
For example, if you buy Infosys stocks valuing Rs.1, 00,000/- then 25 % should be paid i.e.Rs.25000/- and the rest of the amount will be funded by YSL on your behalf for pay-in just like in this case. Alternatively, this 25% may be in stock collateral format.
The percentage of the Margin may vary from time to time.