Then one has to have large caps which will be perceived as strong, so one does not need to put in less compared to an equal amount.

Why would you do this when the market falls?

I think of leverage only because the market is trending and has a chance of going up even more, thereby if I take more trades or bigger trades, I will reap benefits sooner than later. But if the market falls, valuations go down, there will be a lot of opportunities valuation-wise, and if we buy, we may have to wait for long period to see any momentum, so the interest paid will be essentially lost.

I am looking at this purely from a shorter term trading perspective, and not from an investing perspective.

Will be interesting to see how much of drop in revenue is due to volume and realization. Since realizations are linked to steel prices which are down, I didn’t expect a very good quarter.

ICICI Direct
Margin Trading Funding – MTF Facility by ICICI Direct

ICICI direct tells me that it depends from stock to stock. For Titagarh for example, I will need to contribute equal funds. Like if I invest one lakh, they will also do so.
“Margin Funding (MTF) Pay Later
How does the interest charged for MTF work?
Interest will be calculated on the funded amount for the number of days you hold position in MTF. The number of days would start from the exchange pay-in date for the settlement of the respective transaction and charged till the date the funds are actually received i.e Payout date for the settlement.
Interest will be charged for funded amount or Shares as Margin amount blocked against your MTF positions for the number of days you hold said position.
The interest rate will be applicable as per your brokerage plan. You can reduce your MTF interest rate by subscribing to our different prime & prepaid plan.
The interest shall be charged per day basis including non-working days & it will be deducted directly from your bank/trading account. If you want to reduce the I-Sec funding, you can use the “Add Margin” option to add more initial margin to your position.”

Interest rates depend on the brokerage plan. They range from 9.95% to 19.95%

I have till now avoided leveraging, but if the market falls really badly I will try this.

Itna bhi popular nahi hu sir, but my investment thesis has been widely published in F2F

So you got the loan from the banks, even if you did not have your MFs with Groww, and not with their own brokerage houses, so it does not matter? What funds did the banks kept as collateral while giving the loan, equity or debt? Did you have a savings account with the banks, or did you open one, or it is not needed?

Can you provide the details of your thesis w.r.t returns? What kind of return are you expecting from your trading bets, considering the subtraction of interest 9% from the return, and how many trades do you expect to take in 1 year?

In trending market, there are many opportunities, and the capital seems limited, so loan against holding can help. I take shorter term bets, so asking.