What is CNC and MIS and NRML in Zerodha Kite APP. What is cnc in zerodha. How to place order. CNC in Zerodha | MIS in Zerodha at https://kite.zerodha.com
The stock market trading business contains various terminology, which is pretty confusing for new traders and investors. The terms are derived from stock products circulating the stock market. Product codes such as CNC and MIS are common under the famous Zerodha broking firm. It’s a renowned firm in India that hosts more than 30 lakhs investors.
The Zerodha was established by Nithin Kamath and Nikhil Kamath in 2011 and has gain traction over the years. Zerodha offers trading and investment opportunities to many Indian residents. There are complex terms used in the platform, such as CNC and MIS in Zerodha. New investors need to be vast with all trading languages to ensure they don’t make losses.
Zerodha Trading Products (some)
The Zerodha trading firm contains various products as follows:
- CNC and MIS for equity
- Commodity segments
What Does CNC, MIS Mean?
What are CNC and MIS?
- MIS (Margin intraday square-off)
MIS is utilized in intraday trading; it involves stocks, commodities, futures, and options. The trader gets margins; this is credits provided by the broker. The MIS products are squared-off by the end of the day.
- CNC (cash and carry)
This is a service and product code used in delivery-based equity. The CNC trading means the trader is using cash (credit) only. The trader pays cash while buying stocks. The process doesn’t involve margins or credits but cash and carry. The cash term doesn’t mean physical cash but the opposite of credit.
CNC in Zerodha
What is cnc in zerodha?
Cash and carry mean paying the amount and carrying the shares. The CNC method is used by investors who use long-term trading tactics. They hold a stock for more than one day, unlike day traders who need to trade within the same day.
Traders and investors using CNC products require to pay for the delivery transaction. CNC in Zerodha (Zerodha Kite or website) has no charges (free of charge). The product allows investors to set stop and target features. However, there is no leverage in CNC Zerodha.
Note if a trader uses CNC Zerodha to trade but sells the shares on the same day. Automatically the transaction is converted to intraday trading.
How to Place a CNC Order in Zerodha
Step by step detailed process to Place a CNC order in Zerodha
- Open the Zerodha Kite app and enter your password or use the fingerprint.
- The system will open the “watchlist” page. The watchlist should be made before or earlier.
- Next, choose the stock you prefer to form the CNC product in Zerodha.
- Select the “buy” option in case you want to buy.
- Enter the quantity, product type “CNC,” and fill all other options.
- Investors who wish to hold a share for an extended period need to enter “market” as the order type.
- One can also enter “limit, SL, SLM” as the order type.The system will carry forward the products.The intraday order type is squared-off by the end of the day, thus limiting the trader.
- Finally, swipe to buy the preferred quantity.
Selling CNC order in Zerodha
The selling and buying process is similar; the trader needs to log in as follows.
- Login to the Zerodha Kite account.
- On the menu, proceed to holdings and press the portfolio option.
- Click on shares you want to sell.
- Next, click the “exit” tab, enter the quantity, type of order, and all required details.
- Now swipe to sell the order.
MIS in Zerodha
What is MIS in zerodha?
Margin intraday square-off is a product for day traders. They buy and sell their shares on the same day. The MIS in Zerodha offers intraday trading, future and options, and commodity segments. Traders can use leverage in transactions. Note once you select MIS in Zerodha, you are opting for intraday trading. The trade will square off on the same day. The Zerodha brokerage square-off time is 3.20 PM every day.
Long-term investors cannot benefit from intraday trading. The firm doesn’t charge any amount on MIS products. There are zero fees for the MIS transaction, but you need to pay other charges for your plans.
How to Place MIS order in Kite Zerodha
- Open the Zerodha Kite app and proceed to the watchlist section.
- Click on the stock you wish to purchase through MIS product in Zerodha.
- Select buy in case you are buying or sell button.
- The page will present purchasing details or selling information on the screen.
- Enter the quantity, order type, bidding price, and more information based on the needs (buying or selling).
- Next, swipe to buy or swipe to sell to complete the process.
Types of order options under MIS product
|Market order||For traders opting for a market order, the option will be executed based on the current market prices.|
|Limit order||The order is limited according to the price the trader inputs under the bid price.|
|SL order||Stop-loss (SL) order is designed to stop potential losses or limit losses. The trader sets their bid price and trigger price.The system will execute the order once the prices get to the set amount.|
|SLM order||The stop-loss market allows the trader to set the trigger price to buy and sell the shares.|
How to Convert CNC to MIS in Zerodha
Traders and investors can turn CNC to MIS and vice versa using the steps below.
- Visit the zerodha kite APP option and select the “portfolio” option.
- Select the “position” button followed by the three dots on the screen.
- Next, select the “convert” button to make the preferred changes.
Note Zerodha doesn’t charge any fee for converting the products.The only charges that occur in Zerodha depend on traders’ and investors’ plans of the product they choose.
Zerodha Kite App Download
|Apple IOS Users||https://apps.apple.com/in/app/kite-zerodha/id1449453802|
CNC full form
MIS Full Form
Margin Intraday Square-Off (MIS)
Can I change my product type when I have already selected the orders?
Yes, traders can shift from CNC to MIS or vice versa. The platform doesn’t charge any fee for conversion.
How much money should I pay for CNC and MIS transactions in Zerodha?
The firm doesn't charge any amount (zero fees) for transactions. However, you need to pay for other charges incurred in your plans.