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The chances of confusion between various stock market order types like CNC and MIS are very high. If you are here, we know that you are looking for a smooth way out of this confusion. So, without any delay, let’s dive in!

What is CNC and MIS?

There is a range of order types, and it is evident for a new entrant in the market to get confused among them. If you are a short term trader or a long term trader, there is one thing common among both of you – minimize losses and increase profits.

For this, every broker provides multiple order types on their trading platforms. The trader or investor can deploy them and make the most out of a trade or investment.

Also, read What Is CNC and MIS In Zerodha? in detail.

Before you start walking down the lane of understanding the two, let’s know the full form of CNC and MIS.

CNC stands for ‘Cash and Carry’ and MIS stands for ‘Margin Intraday Square Off’.

CNC and MIS in Share Market

We must understand the two order types individually to answer the question – what is the difference between CNC and MIS?

So, let’s go!

Cash and Carry

CNC is a product code that makes it mandatory to hold the financial instrument in your Demat account, without which it is impossible to sell the financial instrument bought.

Cash and Carry (CNC) is useful in the equity segment for delivery trading. As the name explains it, there is no option of availing the facility of leverage, and your trading position is not squared off automatically by the stockbroker.

Review Delivery Trading Strategy and Delivery Trading Rules in detail.

Although, since CNC is only a product code, if you choose to sell the complete or partial order during that trading session by modifying the order type.

Here, it might have started as a delivery trade but will be considered under intraday trading.

Generally, this product code is used by long term investors.

Margin Intraday Square Off

The name of this order type makes the function very clear. It is used by intraday traders while trading in the Equity, Futures & Options, and Commodity segment. This product code enables you to avail the service of leverage.

The margin range is varied for different brokers based on the product you trade. Here, all the trades must be executed before the trading session ends, or the broker automatically squares it off at a fixed time.

Further, you can convert this intraday trade to a long term one by switching the order type to CNC. In this case, the percentage of financial instruments transferred to your demat account is proportional to the leverage percentage for delivery trading.

As a general observation, the margin facility for intraday trading is much more as compared to delivery trading, which in many cases is zero.


Comparing these two order types is challenging as they are deployed in two completely different scenarios. Thus, an in-depth understanding is necessary to use them in the most efficient way possible.

CNC is short for Cash and Carry, and MIS is for Margin Intraday Square Off. They are used in Delivery and Intraday trading, respectively. The former offers no facility of margin, and the latter allows you to avail of this service.

The trader or investor is allowed to modify or switch the order type anytime they wish to. The execution of the trade is altered, corresponding to the changes made.

We hope this detailed information has helped you understand the difference between CNC and MIS.

Happy trading!

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