What is Pay Later (MTF) facility?
Pay Later is designed to give you more flexibility and power while trading. Instead of paying the full amount to buy stocks, you can pay just a small portion—around 20%—and get up to 4X* times the buying power.
You also have the option to carry forward your positions without immediate full payment. It’s an efficient way to free up your capital, take larger positions, and potentially increase your returns, all while managing your cash flow better.
*This limit can vary for different stocks.
Why should an investor use Pay Later (MTF) facility?
As an investor, you can benefit from Pay Later facility. Here’s how!
Leverage:
By utilizing this facility, you can increase your investment size and purchase more shares than you could with your own funds.
Diversification:
Pay Later allows you to invest in a larger variety of stocks with the same amount of funds, providing diversification to your investment portfolio.
Opportunity:
This funding option gives you the opportunity to invest in stocks that you may not have been able to otherwise, potentially leading to higher returns.
Flexibility:
With Pay Later, you can easily purchase and sell stocks, which can be particularly beneficial in a volatile market. This provides you with more flexibility to adjust your portfolio according to changing market conditions.
Let’s understand how Pay Later (MTF) facility works.
Now let's use the illustration to fully understand this idea. If you purchase shares using Pay Later rather than delivery.