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What Is the Difference between CNC and MIS order types?

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CNC and MIS are the product types used while placing trade orders that specify whether you are doing intraday trading or taking delivery of the stocks.

Difference between CNC and MIS

CNC MIS

CNC stands for Cash and Carry.

MIS stands for Margin Intraday Square off.

CNC is used for delivery trading.

MIS is used for intraday trading i.e. buying and selling the same stock same day.

Applicable only for Cash Equity segment.

Applicable across all segments i.e. Equity, F&O, Currency, and Commodity.

No leverage available for CNC orders.

Leverage up to 5x times available for Equity MIS orders.

No short selling allowed using CNC product type.

You can short sell using MIS product type provided you square off the position the same day. You cannot convert it to CNC product type unless you have stock in Demat account.

Lesser brokerage for CNC orders. Some brokers also offer free Equity delivery trading.

Higher brokerage for MIS orders compared to CNC orders.

No risk of auto square off for CNC orders.

MIS orders carry the risk of auto square off with charges if not squared off within specified time.

Lesser or no risk of loss in case you have holding capacity.

Risk of loss if the price goes in unfavourable direction during the day.


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