PSX Margin Financing (MTS) Calculator

Trading with leverage? Calculate your **Mark-up Costs**, **Finance Amount**, and **Net ROI** after interest to understand the true cost of borrowing in the Pakistan Stock Exchange.

The Two-Edged Sword

Leverage allows you to control a large position with a small amount of cash. While this can double or triple your profits in a bull market, it can also wipe out your entire capital in a single day during a crash.

Bullish Scenario

A 10% stock move with 3x leverage results in a 30% return on your equity.

Bearish Scenario

A 10% stock drop with 3x leverage results in a 30% loss of your equity.

MTS vs MFS

FacilityDescription

MTS (Trading)Short-term leverage for liquid stocks.

MFS (Financing)Longer-term financing for your portfolio.

Mark-up Impact

In a high-interest-rate environment (like Pakistan in 2023-24), your mark-up cost can easily exceed 20% p.a. This means the stock MUST grow by at least 20% just for you to break even.

Frequently Asked Questions

Get answers to common questions about using our professional trading tools.

MTS is a leveraged trading facility where you can buy stocks by paying only a portion of the cost (Equity) and borrowing the rest from a financier at a predetermined mark-up rate.

💡 Pro Tip:All our tools are 100% free with no signup required.

The mark-up rate is typically linked to KIBOR (Karachi Interbank Offered Rate) plus a spread (e.g., KIBOR + 3%). It represents the 'interest' you pay on the borrowed amount.

If the price of your leveraged stock drops significantly, your equity might fall below the required 'Maintenance Margin'. The broker will then ask you to deposit more cash or sell your shares to cover the loss.

Traditional MTS involves interest (mark-up) and is generally considered non-compliant by Shariah scholars. For Islamic leverage, look for 'Murabaha' based financing options offered by Islamic brokerage windows.

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