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Margin Trading Facility (MTF) is an exchange-approved product wherein individuals can purchase stocks by paying only the initial margin, with the remaining amount being funded by Kotak Securities Ltd. One can either keep the position open as long as they want or can take delivery of the stock.
So, I'm given a certain wavelength $\lambda$ and the grating costant $d$ (distance between slits). I'm asked to find the maximum order of diffraction for this set of data. In general, when light falls upon the grating with angle $\theta_i$ and escapes (I don't know the right word in English, sorry) with an angle $\theta_s$, the total optical path difference is given by \begin{equation} \Delta=d(\sin \theta_i+\sin \theta_s) \end{equation} which combined with the maximum condition for bright zones $\Delta=m\lambda$ gives \begin{equation} d(\sin \theta_i+\sin \theta_s) =m\lambda \end{equation} where $m$ is the order of the maximum. So, the problem is very easy to solve when we have normal incidence (where $\theta_i=0$), but I can't manage to solve it in general where the two angles are involved. I have been told by colleagues that the maximum order is indeed $m=d/\lambda$ but I can't understand why. Every opinion is welcome. Thanks in advance for any response.
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Benefit: Leverage enables you to amplify returns on a smaller investment, as seen when paying only 20% upfront for a 10% return on the stock price, resulting in a 50% return, pre-cost.
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Benefit: Unlimited holding period allows you to hold a trade indefinitely if you believe it offers a better chance of making a profit.
MTF can be accessed with any of our brokerage plans, giving you the ability to boost your buying power. However, the Trade Free Pro Plan offers a lower interest rate. The good news is, you can start using MTF without any additional documentation! Simply accept the disclaimer, and you're ready to go.
Kotak Securities offers lower MTF rates of 9.75% per annum or 0.0267% per day, which are applied from T+1 day onwards on the Trade Free Pro Plan. These charges vary based on your selected brokerage plan.
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To create an MTF position, you can utilise cash, existing stocks, and ETFs held in your Demat account as collateral, post-pledging.
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Margin Trading Facility (MTF) provides you with additional leverage for trading, allowing you to buy up to 4x more shares than your available funds. By placing a small margin in cash or stocks as collateral in your Demat account, Kotak Securities funds the rest. With Pay Later (MTF), you only pay a fraction of the total trade value upfront, and Kotak Securities will cover the remaining. This facility helps you maximize your buying power and can also be used when you're short on funds. Simply put, buy shares now and pay later!
Risk: However, it's crucial to note that leveraging also adds losses on a smaller investment. For example, paying only 20% upfront for a 10% loss on the stock price means you lose 50% of your capital, pre-cost. Understanding the risks associated with Leverage is vital for informed decision-making.
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Investments in securities market are subject to market risks, read all the related documents carefully before investing. Brokerage will not exceed SEBI prescribed limit. The securities are quoted as an example and not as a recommendation. SEBI Registration No-INZ000200137 Member Id NSE-08081; BSE-673; MSE-1024, MCX-56285, NCDEX-1262. Read full disclaimer here
The creation of a MTF position against shares as collateral is now open to investors. SEBI and Exchanges keep a close eye on the securities that qualify for the MTF, and they periodically prescribe the margin that must be placed on such securities (either in cash or as shares of collateral).
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With Kotak Securities Ltd, once you have pledged your MTF stocks, you can maintain your position for as long as you wish, or you may choose to convert the position to cash.
Once you send the email, our team will activate MTF for your account and confirm the same over mail. You can then begin placing your orders using MTF!
You may continue to own shares if you like and pay interest on the funding amount. MTF is only available to a couple of exchange-approved stocks, as opposed to Cash. In your app, this information is available on a stock detail page that relates to margin requirements.
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As a first observation, there is no maximum order. There is however a maximum propagating order, for which $\sin \theta_s = 1$. Higher orders will not propagate but exponentially decay in the propagation direction.
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The holding period on MTF with Kotak Securities is unlimited. This means that you can hold a stock for an unlimited number of days in MTF with Kotak Securities. Do note that interest charges will apply for the duration of the position, basis your pricing plan.
Margin trading facility, can be powerful if you aim to maximize the potential of your business. This feature makes it possible to place more bets on the market than your account balance usually is able to allow, which can result in a higher profit margin by increasing purchasing power.
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With the introduction of the pledge model in September 2020, it has become mandatory to pledge stocks purchased under the Margin Trading Facility.To hold your MTF position for as long as you want, user are required to pledge the stocks purchased under MTF on T Day on the link received from NSDL.
The maximum propagating order propagates at 90$^{\circ}$ so parallel to the grating. It has $m=d/\lambda$ for perpendicular or $m=2d/\lambda$ for maximally oblique incidence.
Risk: Nevertheless, holding a trade for an extended period increases your interest costs, raising the breakeven for your trade. Additionally, if the trade moves against you, you may need to provide higher margins or face liquidation.