https://v2.webnotes.in/tags/convert-to-mtf/Recent content in Convert to MTF on WebNotesHugoen-INFri, 19 Jun 2026 00:00:00 +0000https://v2.webnotes.in/how-to-convert-to-mtf-zerodha/Tue, 12 May 2026 00:00:00 +0000https://v2.webnotes.in/how-to-convert-to-mtf-zerodha/<aside class="callout callout--warn" role="note"> <strong class="callout__label">Leverage risk disclosure</strong> <div class="callout__body">Converting a CNC holding to MTF introduces borrowed funds and leverage of up to 4:1 against your equity position. The cash released (the funded amount) is a loan from Zerodha. Interest accrues daily on this loan at approximately 0.04% per day (approximately 14.6% per annum as of mid-2026). If the share price falls and the collateral value drops below the required maintenance margin, Zerodha&rsquo;s risk management system can forcibly liquidate the MTF position at prevailing market prices, potentially locking in a capital loss. MTF conversion is not suitable for investors who need the shares for long-term, unencumbered delivery holding.</div> </aside> <p>On <a href="https://v2.webnotes.in/zerodha/">Zerodha</a> , an existing CNC (delivery) holding can be converted to an <a href="https://v2.webnotes.in/zerodha-mtf/">MTF</a> position through a conversion feature in the Kite Holdings view. The conversion is effectively a broker-funded buyback of the delivery position: Zerodha credits the funded amount (up to 75% of the current market value) to your trading account, while the shares move into an MTF-pledged state. This releases liquidity from an existing holding without requiring a sale, allowing the investor to use the freed cash for other purposes while retaining exposure to the stock.</p>