Broking firm Zerodha has launched margin trading facility for its users.
“I don’t know if it is a good time with the fall in the markets, but we are finally launching MTF (margin trading facility) which allows you to buy stocks for delivery by borrowing money from us,” said Nikhil Kamath, founder.
Kamath, on X, said the MTF has been launched due to the request made by several customers seeking this feature. However, he said he “will never push this to customers”.
“I haven’t been sure about this product for a long time because of obvious reasons. Customers who trade for delivery tend to ignore the impact of the cost of borrowing, and there’s always the risk of the trade going against them, which leads to a bigger loss,” he explained.
“But in the last 3 to 4 years, MTF has grown tremendously, with pretty much everyone offering it. Considering the number of customers asking us for the feature, it didn’t make business sense for us to not offer it,” he added.
The company reported a $1 billion revenue in FY24. The net profit was up 89 per cent to ₹5,496 crore from ₹2,908 crore last fiscal year. Revenue from operations rose by 37.16 per cent to ₹9,372 crore or a little over $1.1 billion in FY24, compared to ₹6,832 crore in FY23.
