Longterm (CNC), Intraday (MIS), and Overnight (NRML) are product types used when placing orders through Kite.
Longterm (CNC - Cash and Carry)
Longterm (CNC) is used for delivery-based trading in equity. This product type allows you to hold stocks overnight for any duration you want.
Things to keep in mind
- You cannot get leverage when using Longterm (CNC)
- Your positions will not be automatically squared off
- You cannot take short positions using Longterm (CNC)
- You can sell stocks from your holdings when using this product type
When you buy and sell a share on the same day using Longterm (CNC), your trade will still be treated as an intraday trade, and you will be charged brokerage accordingly.
Intraday (MIS - Margin Intraday Square Off)
Intraday (MIS) is used to get intraday leverage for your trades. This product type works for equity, equity F&O, commodity futures, and currency futures.
Things to keep in mind
- You can use Zerodha's margin calculator to determine the margins provided for intraday trading
- Your open positions will be automatically squared off if you do not close them before the scheduled auto-square off time
- You get margins or leverage for intraday trading
Overnight (NRML - Normal)
Overnight (NRML) is used for overnight trading of Futures and Options (F&O). This product type allows you to carry your positions until expiry in the derivatives market.
Things to keep in mind
- You can hold positions until expiry
- You do not get intraday leverage with Overnight (NRML)
- You can also use Overnight (NRML) for delivery-based trading of currency