Brokerage firm Zerodha has launched a margin trading facility for its users.
“I don’t know if it is a good time with the markets falling, but we are finally launching MTF (margin trading facility) through which you can buy shares for delivery by borrowing money from us,” said Nikhil Kamath, Founder.
Kamath said on X that the MTF was launched due to the request of several customers who were looking for this feature. However, he said he will “never push this through to customers.”
“I wasn’t sure about this product for a long time for obvious reasons. Customers who trade for delivery tend to ignore the impact of borrowing costs, and there is always the risk that the trade will go against them, leading to a bigger loss,” he explains.
“But over the past three to four years, MTF has grown tremendously, with almost everyone offering it. Given the number of customers asking us for this feature, it didn’t make business sense not to offer it,” he added.
The company reported revenues of $1 billion in FY24. Net profit rose 89 per cent to ₹5,496 crore from ₹2,908 crore last fiscal. Operating revenue rose 37.16 percent to ₹9,372 crore or just over $1.1 billion in FY24, compared to ₹6,832 crore in FY23.
