Leverage is pro-cyclical i.e., increase as the markets go up, which has been the case in the post-pandemic period. While leverage in F&O has steadily reduced because of regulatory tightening, some of it has migrated to margin trading facility (MTF).

MTF’s popularity is very recent and most retail customers don’t really understand the risks. While we offer MTF, we do it without being loud about it or constantly pushing it. We are probably the only platform to warn users before they enable MTF.

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