What is CNC order in trading?

CNC order is an acronym of Cash and Carry order. As the name, CNC order is used to buy goods today, hold them in your demat account, and sell them at a later date. CNC order is popular order used for delivery trading.

How CNC order works?

If you want to buy stocks with the intention of holding for few days, or months or year, you must place CNC order.

In delivery trading, orders placed today are settlement on T+1 days. Means stocks you have purchased today are transferred next day to your demat account. In CNC delivery segments, 100% upfront margin is required as no margin or leverage is offered. An investor need 100% capital to buy required number of shares.