Leverage trades via MTF gather steam as market momentum picks up pace

The rise in the usage of the margin trading facility comes as the Nifty index soared over 17 per cent from its April lows

Market participants have ramped up leveraged bets, or trading done via a margin trading facility (MTF), as benchmark indices are back to hovering close to record levels.

 

The total outstanding margin facility availed by traders has risen 7 per cent in June-end to a record ₹84,646 crore, according to data from the National Stock Exchange compiled by Business Standard. On a quarterly basis, the three-month period ending June saw a 24.4 per cent rise in margin loans against a decline of 17.6 per cent in the March quarter.

 

MTF enables traders to purchase securities by paying only a