Using an mtf calculator effectively can give you an edge in planning your trades. It helps estimate the cost of leverage, which is crucial in tight-margin situations.

???? Steps to Use an MTF Calculator:

1. Select the stock you want to buy.

2. Enter the stock price and quantity.

3. Choose your broker’s margin/leverage ratio (e.g., 2x, 3x, or 4x).

4. Enter holding duration (in days) to calculate interest.

5. Click ‘Calculate’ to view:

   • Margin you must pay

   • Broker funding

   • Total interest cost

???? Pro Tip:

Always compare the interest cost to your expected return. If your expected profit is 5% and your interest is eating up 3%, the trade might not be worth the risk.

???? Benefits of Using It:

• Prevents over-leveraging

• Ensures you have enough funds to maintain margin

• Helps align profit targets with interest outflow