MTF vs Options for Positional Traders: Risk Comparison

At first glance, both Margin Trading Facility (MTF) and options allow leveraged exposure. But the nature of risk differs fundamentally. In MTF, you borrow funds to buy delivery shares. Your risk is linear. If the stock falls 5%, your leveraged capital absorbs a magnified loss. There’s no expiry, but interest accrues daily on the borrowed amount.

read more