Can I use the margins released from selling my MTF holdings to take further positions?
Yes, margins (cash/pledged collateral) will be released and added to your buying power immediately, i.e., on T day of selling/exiting your MTF position, subject to Mark to Market (MTM) losses.
For example, Mr Girish has an MTF position of Rs. 2 lakhs with a cash margin of Rs. 50,000 (Rs. 1,50,000 is broker-funded). He sells these holdings for Rs. 1,90,000. As a result, Rs. 40,000 (Rs.1,90,000 - Rs. 1,50,000) is released from his cash margin.
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