If you are reading this, the odds are that you are either new to Zerodha or have been planning to open an account with it. Zerodha is the pioneer of the Indian discount brokering industry and offers multiple types of trades across various segments. To know what is CNC and MIS in Zerodha, dive in!
Talking about the abbreviations, CNC stands for “Cash And Carry” while the full form of MIS is “Margin Intraday Square-Off”. MIS is used for intraday trades while CNC for delivery trades.
CNC is the delivery-based trades wherein you hold a particular stock or indices for some period of time. This is preferred by those traders who wish to invest and not immediately sell-off their shares.
Cash and carry, therefore, is a product code applied on delivery trades – both “buy” as well as “sell”. In simple terms, once you specify your buy or sell order as “CNC”, it will neither be auto squared off nor will provide any leverage.
Log in to your Kite mobile app using Zerodha login credentials and select a stock from your watchlist that you wish you purchase
Now enter the quantity of stock you wish to buy and click on “CNC” under the “product” section
Since CNC stocks are intended for long-term investments, it is preferable to select “market” as the order type because no possibility can be predicted exactly for a longer span of time
However, if you wish to place a limit, SL, or SLM order, the procedure is the same as that of an intraday one. The only difference is that these orders remain held with you unlike intraday orders that get squared off before the market closure time
Zerodha does not charge you anything for placing delivery orders. Just fill in your order details, select “CNC” as the product type and that’s pretty much it. However, one has to pay dp charges in Zerodha on sell order under CNC.
Since delivery trades are held for long, your order type must preferably be “market” as your aim is to invest in the stock rather and making a profit or limiting losses on it.
MIS In Zerodha Kite
Since CNC and MIS in Zerodha Kite depict the product type, here we come next with the MIS.
Once you set the product type of your Zerodha order as “MIS”, it is essential to square-off your open position before the market closure time. Zerodha’s square of time is at 3:20 pm for intraday trades.
How to Place Zerodha MIS Order?
However, placing order for CNC and MIS in Zerodha Kite is similar, here is the quick review of the steps on how to use Zerodha Kite for using MIC order.
Log in to kite mobile app and open your watchlist
Select the stock you wish to buy from your watchlist
Once you click on a particular stock, it’s entire detail (such as market depth, bid, number of orders, offers, and quantity) along with the “buy” and “sell option will appear
Fill in the quantity of stock you wish to purchase and select the “MIS” box – since we are carrying out an intraday trade
MIS stands for “Market Intraday Square Off” hence, you will have to square off your open position before the market closure
In case you want to place a market order, select the “market” as your order type. Here, you will not be able to alter the order price because it will be executed on the current market rate
If you select “limit” as the order type, you can set an order type as per your desire. The order will be executed if the limit price is reached before the auto square off time
If you select “SL” which is a limit order with added stop-loss, you need to set your “stop-loss price” which when reached executes the order as well as limits the losses. Such orders are executed once the stock reaches the stop-loss price
For “SLM” you will have to set a “trigger price” for your order. Once the trigger price is hit, your order will be squared off. This order will be squared off at the current market rate as and when the stop-loss price is met
You may also make your order a BO, CO, and AMO under the “variety segment”. These are advanced order types and are totally optional.
Zerodha MIS Charges
You can place MIS orders on Zerodha Kite (both web and mobile) for absolutely free. The broker does not charge any extra fee setting MIS as your order’s product type.
Simply select your desired stock, fill in the quantity, price, trigger and limit prices if required. Finally, select “MIS and you are pretty much done.
So, if you are worried about such fees, then the good news is that the broker does charges any fees before execution of an order.
Choose the order type and do the smart trading in a smarter way using the mobile trading app efficiently. Since Zerodha is the leading discount broker you would be able to reap many more benefits like assurance and better security of funds.
Hope you are now clear about CNC and MIS in Zerodha Kite. So start investing in a planned manner now.