Hi Aadhar, I am using ICICI direct MTF facility, interest is paid from BTST, Intraday or positional partial sell on open positions. Its a boon in a bull market and curse in a bear market. Have paid price during 2018-19 correction hence i wouldn’t recommand to anyone.
On a positive note, whatever multiplier i have achieved is because of MTF as it has a significant contribution. Stock doesn’t know if you have bought in cash or leverage.
Disciplined trade keeping aside emotions and not avoiding booking losses can have a consistent additional capital generation.
For example, I had created a 25% of PF position in MTF for Samhi Hotels between 170-184 levels with average 177, converted 50% to delivery and squared off remaining between 200-212 levels. Got 6000 stocks free. ,
Select only out of favour stocks or buy on a major dip in MTF as once you run in losses in MTF mind stop working.
Current market is not suited for excessive leverage as 99% of pockets look overvalued hence I have concentrated consumption oriented bets only. Govt Capex theme is strict no rightnow for me at least. Govt Finance stock trading at P/B of 7 and HDFC at 6.
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