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What does CNC, MIS and NRML mean?

A trader needs to use one of these product codes every time he places a trade either through Kite or Pi.

MIS – stands for Margin Intraday Square Off
CNC – stands for Cash and Carry
NRML – Normal

MIS product code is used for trading Intraday Equity, Intraday F&O, and Intraday Commodity Trading. Using the MIS product code you will get an intraday leverage between 3 to 10 times based on what stock you are trading. For F&O, the margins required will be 35% and 45% of total margin required (SPAN + Exposure), for index & stock contracts respectively. No margins will be provided for buying Options. All the positions under the MIS product code will get automatically squared off at 3.20 PM. If you use the MIS product code for Commodity, you will get extra leverage and you will need only 50% of overnight exchange stipulated margin (SPAN + exposure) by using this product type.

CNC product code is used for delivery based trading of equity. Using CNC product code you will not get any leverage nor will your position be auto squared off. You will not be able to sell using the product code CNC without holding the particular stock in your DEMAT account.

Note: CNC is just a product code. If you use CNC to buy and sell a share on the same day, it will still be considered as an intraday trade.

NRML product code is used for overnight trading of futures and options. If the client does not want any excess leverage, he can use the product type NRML, and he would not have to worry about auto square-offs. NRML product code is also used for Delivery based trading of Currency.