India, Dec. 19 -- Zerodha has launched margin trading facility (MTF) that will allow users to trade on borrowed money on the platform.

"I don't know if it is a good time with the fall in the markets, but we are finally launching MTF (margin trading facility) which allows you to buy stocks for delivery by borrowing money from us," Nithin Kamath, founder and CEO of Zerodha, announced on X today (December 19).

However, on its blogpost, Zerodha has advised against using MTF. "Leverage is like a weapon of mass destruction, and MTF is a leveraged product, so trade with caution," read the post.

According to Zerodha, with a leveraged trade, time is acting against the user because there is a cost to holding a stock bought via MTF.

Notably, the...