What does CNC, MIS and NRML mean?
CNC, MIS, and NRML are the product types used when placing orders through Kite.
Cash and Carry (CNC) is used for delivery-based trading in equity. In delivery-based trading, individuals have the freedom to hold stocks overnight for any desired duration. When using the CNC product type, there is no provision for leverage, and positions will not be automatically squared off. Taking short positions is not possible using CNC. However, individuals can sell the stocks from their holdings when using this particular product type.
Did you know? When using CNC to buy and sell a share within the same day, it will still be regarded as an intraday trade, and the brokerage charges will be applied accordingly.
Margin Intraday Square Off (MIS) is used to get the intraday leverage. The MIS product type is specifically designated for trading Equity, Equity F&O, Commodity futures, and Currency futures. Traders can use Zerodha's margin calculator (WEB) to determine the margins provided for intraday trading using the MIS product type. It is crucial to know that any open positions under the MIS product type will be automatically squared off if they are not closed before the scheduled auto-square off time. To learn more, see What are the auto square-off timings for open intraday positions?
Normal (NRML) is used for overnight trading of futures and options. It allows traders to carry their positions until expiry in the derivatives market. However, intraday leverages are not available when using the NRML product type. Additionally, the NRML product type is also used for delivery-based trading of currency.