1. What is Dhan MTF?

Dhan Margin Trading Facility (MTF) allows traders to borrow funds from brokers to purchase securities. It enables leveraged trading with borrowed capital, amplifying both potential gains and losses.

2. How Does the Calculator Work?

The calculator uses the Dhan MTF interest formula:

Where:

• \( Loan Amount \) — The borrowed amount in INR
• \( 0.0432\% \) — Daily interest rate (0.000432)
• \( Days \) — Number of days the loan is held

Explanation: The interest is calculated on a daily basis at 0.0432%, which compounds to 14.4% annually.

3. Understanding MTF Charges

Details: MTF charges include interest on the borrowed amount, which accrues daily. The 14.4% annual rate is standard for Dhan's margin trading facility, making it essential to calculate costs before trading.

4. Using the Calculator

Tips: Enter the loan amount in INR and the number of days you plan to hold the position. The calculator will show both daily interest and total interest for the specified period.

5. Frequently Asked Questions (FAQ)

Q1: What is the interest rate for Dhan MTF?
A: Dhan charges 0.0432% per day, which equals 14.4% annually on the borrowed amount.

Q2: How is MTF interest calculated?
A: Interest = Loan Amount × 0.000432 × Number of Days. It's calculated daily on the outstanding balance.

Q3: When is MTF interest charged?
A: Interest is charged daily and deducted from your trading account at the end of each trading day.

Q4: Are there any other charges besides interest?
A: Besides interest, standard brokerage and transaction charges may apply as per Dhan's fee structure.

Q5: Can I reduce MTF interest costs?
A: Yes, by repaying the borrowed amount quickly and avoiding holding positions for extended periods.