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MIS (Margin Intraday Square off) and CNC (Cash N Carry) are the two types of orders in Zerodha.
Zerodha Margin Intraday Square off MIS orders
MIS is an order used for intraday trading where a trader must close all the positions on the same day. As a trader, if you want to buy and sell stocks on the same trading day to make profits from short-term price movement, an MIS order should be placed..
Zerodha Cash N carry CNC orders
CNC order is used for delivery-based trading where shares purchased are delivered to your demat account within T+1 day. It means when an investor wants to purchase shares to hold them for longer period i.e., more than 1 day, CNC order is used.
MIS Order Vs CNC Order: Key Differences
| MIS Order | CNC order | |
| Meaning | Buying and selling the same day | Buy stocks, take delivery in your demat account, and then sell them |
| Purpose | Get profit from short-term price fluctuations | Intention to make profits in long run. |
| Holding Period | 1 Day | More than 1 day |
| Leverage | Upto 5x margin on intraday trading in Zerodha e.g. if you have Rs 2,000 in your trading account, you can place MIS orders for Rs 10,000 because of 5 times margin available. | No margin on delivery trades, 100% upfront money is required If you want to invest Rs 10,000, you must have the amount in the Zerodha trading account. |
| MIS Sell order/td> | You can sell shares (intraday) without even having them in your demat account, and buy them later at a lower price to make profit, it is called short-selling. | More than 1 day |
| Square off | All MIS (intraday) positions must be closed before market closure. If not done by 3:20 PM, Zerodha will auto-square all open MIS positions at a fee. Auto-square off charges: Rs 50 per order | CNC orders are carried forward. Shares bought today are transferred to your Zerodha demat account within T+1 day. |