Whenever you place an order through Zerodha Kite or a web platform, you need to choose product codes like MIS and CNC in Zerodha Kite.
CNC and MIS in Zerodha are two different order types used by traders for buying and selling stocks and other financial instruments on the stock market.
In this article, we have explained in detail what is CNC in Zerodha, what is MIS in Zerodha, CNC, and MIS charges in Zerodha.
CNC and MIS in Zerodha Kite
What is CNC in Zerodha Kite?
The full form of CNC is Cash and Carry. Zerodha does not provide any margins for CNC. It means you have to pay the full amount to buy CNC shares. CNC and MIS in Zerodha Kite
Things you should know about CNC in Zerodha Kite
- CNC orders are used for delivery-based trading. You can use CNC orders if you want to buy or sell stocks and hold them in your demat account for the long term, i.e., more than one day.
- When you place a CNC order to buy stocks, you can’t use leverage margin. You should have the full amount (cash) available in your trading account to purchase the stocks.
- When you place a CNC order to sell, you need to have the actual stocks in your demat account to sell them.
- In the case of CNC, the position would not be auto-squared, instead, you will ‘carry’ the share until you want to place the sell order. Till then, the asset would remain in your demat account.
- CNC orders are typically used for investing and taking delivery of shares.
Also Read: What is BO and CO in Trading? (Clear Examples and Explanations)
Zerodha charges on CNC orders (Zerodha Delivery Charges)
Zerodha does not charge any brokerage on CNC orders (delivery-based trades). Just place the CNC order and let it carry forward.
Open Zerodha Account Directly Here
How to Place a CNC Order in Zerodha
Here is the step-by-step process to Place a CNC order in Zerodha:
- Login to the Zerodha Kite app with the user id and password.
- Select the stock you want to buy from the watchlist
- Click on the “buy” option in case you want to buy shares.
- Enter the price, and quantity and select the product type “CNC.” The app will automatically carry forward the shares at the end of the trading day.
- You can also select “limit, SL, SLM” as the order type (depending on your requirements).
- Finally, swipe to buy the shares.
Read More: Long Build Up Meaning In Stock Market | Bullish Signs or False Alarm?
What is MIS in Zerodha Kite?
The full form of MIS is Margin Intraday Square-off. In the case of MIS trades, the broker provides a margin of 3 to 10 times of your balance, depending on the stock you choose for intraday trading. CNC and MIS in Zerodha Kite
If you want to convert MIS to CNC, check quick process How To Convert Intraday to Delivery in Zerodha in 1 Min? Quick and Easy
Things you should know about MIS in Zerodha Kite
- MIS orders are used for intraday trading. You can use MIS orders if you want to buy or sell stocks within the same trading day and don’t want to carry forward shares for the next few days.
- When you place an MIS order to buy, you can take advantage of leverage. It means you can buy shares at less than they are actually available in the market. The broker provides leverage for intraday trades, allowing you to control a larger position with a smaller amount of capital.
- MIS orders have to be squared off (exit position) by the end of the trading day. If you don’t close your positions by the end of the day, Zerodha will automatically square off the positions on your behalf at 3:20 p.m.
- MIS orders are used for short-term trading and speculation.
If you are interested in Intraday Trading in Zerodha, here is your guidance How to Do Intraday Trading in Zerodha 2024 (5 Simple Steps)
If you want to start Options Trading in Zerodha, then here is your guidance How to do Option Trading in Zerodha Kite App 2024? Activate Options in Zerodha (F&O)
How to Place MIS Order in Kite Zerodha
Here is the step by step process to Place an MIS order in Zerodha:
- Login to the Zerodha Kite app with the user id and password.
- Select the stock you want to buy from the watchlist
- Click on the “buy” option in case you want to buy shares.
- Enter the price, and quantity and select the product type “MIS.” Make sure to square off the intraday position by 3:20 p.m.
- You can also select “limit, SL, SLM” as the order type (depending on your requirements).
- Finally, swipe to buy the shares.
Zerodha charges on MIS orders (Zerodha Intraday Charges)
Zerodha charges intraday or Margin Intraday Square off (MIS) charges of 0.03% or ₹20, whichever is lower per executed order. (You can check the detailed list of all Zerodha charges here: Zerodha Brokerage Charges, Fees, AMC, Transaction Charges 2024)
Once you know the charges, you can compute the estimated Zerodha Brokerage Charges in advance by using Zerodha Brokerage Calculator
Also Check: How to Add Nominee In Zerodha Kite Mobile App In Just 5 Min?
Conclusion
In summary, CNC orders are for delivery-based trading, where you want to hold stocks in your demat account, while MIS orders are for intraday trading, where you buy and sell stocks within the same trading day without taking delivery. It’s important to understand the implications and risks associated with each order type before placing trades, as they have different margin requirements and settlement processes.
Frequently Asked Questions
Which is better CNC or MIS?
The choice between CNC and MIS depends on your trading or investment strategy and your risk tolerance. CNC is suitable for investors who want to hold stocks for the long term, whereas MIS is suitable for intraday traders who want to earn profit from short-term price movements.
Can CNC be sold same day?
Yes, you can sell CNC stocks on the same day, but it will still be considered a delivery-based trade.
Which is better intraday or CNC?
Intraday trading gives you the opportunity for quick gains but also involves higher risk, whereas CNC is better for long-term investors who want to buy and hold stocks for growth over time. It’s less risky compared to intraday.
Does Zerodha charge for CNC orders?
No, Zerodha does not charge any brokerage or fee for CNC orders.
Is CNC free in Zerodha?
Yes, CNC is free in Zerodha.
Can I buy CNC and sell same day?
Yes, you can buy CNC stocks and sell them on the same day. However, even if you sell CNC stocks on the same day, it will still be considered an intraday trade. This transaction will be considered as a regular intraday trade and you have to pay brokerage and other charges as applicable on intraday trading.
