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What are the risks associated with MTF trading?
Your profit potential increases when you invest in stocks, ETF or trade in F&O using MTF. However, on the flipside, your risk of losses is also multiplied when you trade with MTF. You may not just lose the capital, but the borrowed capital as well and will also need to pay interest on top of it.
Additionally, you have to maintain a minimum balance as required by RMS, failing which some or all your holdings can be liquidated by your broker, resulting in potential loss if the price of the securities goes up.
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