Cash-and-carry (CNC)

Cash-and-Carry (CNC) is a product type used in stock market trading for equity delivery trades. When you buy shares using CNC, you must pay the full value of the shares upfront, and those shares are delivered to your Demat account. You can then hold them for as long as you want—days, months, or even years—without any time restriction.

Unlike margin or intraday trading, CNC positions are not squared off automatically on the same day.

Key Features of CNC

1. Full Payment Required – The buyer must pay 100% of the trade value; margin/leverage is usually not provided.
2. Delivery of Shares – Shares bought under CNC are credited to your Demat account (T+1 or T+2 days, depending on settlement rules).
3. No Intraday Obligation – Positions are not closed on the same day unless you choose to sell.
4. Holding Period – No expiry; you can hold the shares for as long as you wish.
5. No Leverage (in most brokers) – Unlike intradzay (MIS) or margin trades, brokers don’t provide extra funds for CNC.
6. Sell Orders – When you sell shares using CNC, they are debited from your Demat account, and the proceeds are credited after settlement.

Example

• Suppose you buy 100 shares of Reliance at ₹2,500 using CNC.
• You pay ₹2,50,000 (100 × ₹2,500) in full.
• These shares are delivered to your Demat account after settlement (T+1/T+2).
• You can hold them for any duration and sell later at your convenience.