MTFs have become popular among retail investors: What's the risk
Margin trading in India has soared past ₹1 lakh crore as of March 22, 2026.
More retail (and new) investors are using borrowed money from brokers to buy stocks and try to boost their returns during market rallies.
MTF wipeouts are estimated at ₹15,000-25,000 crore annually
With margin trading, you only need to put up a part of the stock price; brokers cover the rest, but charge interest typically in the high single digits to the high teens (roughly 8-18% p.a.).
While this can help you earn more if stocks go up, it also means bigger losses if things turn south: retail MTF wipeouts are estimated at roughly ₹15,000-25,000 crore annually.
Know your broker well before diving in
The National Stock Exchange (NSE) dominates with 97% of all margin trades.
Bank-backed brokers have about half the market share, while popular independents like Zerodha hold around 5% to 6%.
So if you're thinking about trying MTFs, know who you're dealing with, and remember: higher potential gains always come with higher risks.