Zerodha is the number 1 broking firm in India in terms of accounts. They are also the pioneer in the discount stockbroking industry in India. Zerodha was founded in the year 2011 by two brothers Nithin Kamath and Nikhil Kamath.
If you reading this article you are probably new to investing or at least new to the Zerodha trading platform. So for those new energetic investors and traders, this article will include all detailed information on CNC & MIS in Zerodha.
Zerodha offers different products such as CNC and MIS for equity, delivery (futures and options) & commodity segments. CNC is the abbreviation of “Carry and cash” and MIS full form is “Margin Intraday Square-off”.
1. What is CNC Zerodha?
CNC in the stock market means “Cash and Carry” as the name suggests it mean paying the entire amount and carrying the share for more than one day.
It is used by investors who want to hold on to share for more than one day. CNC is used by long-term investors to hold on to share for a long period of time For Eg:- 6 months, 1 year, 2 years, etc.
When an investor uses his product he has to pay charges according to the delivery transaction. The CNC product on the Zerodha (kite app. and website) charges “0” fees in terms of brokerage, which means it’s absolutely free to use.
While using CNC in Zerodha which also means delivery trade, here investors will able to set the stop loss and target, but in this trade, you will not able to use the leverage.
CNC is of no use to intraday traders. As it is used by the investor to carry the position for more than one day.
If you buy shares selecting CNC products and sell the share on the same day the transaction gets converted into an intraday trade more on this later in the article.
2. How to place a CNC order in Zerodha?
Place the CNC order on the Zerodha Kite Application is a really easy task. Just follow the below steps:-
- First login into the Zerodha Kite Application by inputting the password or using your figure print.
- You will land on the ‘Watchlist’ which you must have created in the past.
- Select the stock you want to buy under CNC product on Zerodha.
- Click on the buy option (If you want to buy the shares click on the buy option).
- Now fill up the quantity, product type as “CNC”, and all other options.
- Usually you will select the ‘market’ as order type if you want to hold on the share for longer period of time if you select CNC.
- But, If you wish to place order type as ‘limit’, ‘SL’ or ‘SLM’, then this orders will be carried forward with your, unlike in the case of intraday trade where this types orders are squared off at the end of the trading day.
- Then swipe “swipe to buy” the desired quantity.
2.1. How to sell CNC order in Zerodha?
The entire process of selling stock in CNC products in Zerodha is the same as buying.
- Login in your account
- Go to your holdings – by pressing the ‘portfolio’ option in the center of the screen.
- Select the share you want to sell, click on that share.
- Press the ‘Exit’ button.
- Fill in the required or desired information such as the quantity you want to sell, type of order, and all the other options.
- Lastly, just swipe the “swipe to sell” option to complete the sell order.
Isn’t it Easy?
3. What is MIS in Zerodha?
MIS in the stock market means “Margin Intraday Square-off”.
This product is used if an investor wants to place an intraday order. Which in simple words means an investor wants to buy and sell shares on the same day.
MIS product on Zerodha platform is used for intraday trading in equity, delivery (futures & option), as well in commodity segments.
In MIS order in the Zerodha platform will also help to use leverage in the transaction.
When you select the MIS product on Zerodha it automatically means you want to conduct an intraday trade transaction which means the transaction will square off at the closure of the trading day. On Zerodha square-off time is 3:20 pm for intraday trades for every trading day.
This product is of no use to long-term investors or investors who want to hold on to shares for more than one day.
Zerodha charges ‘0’ fees to use the MIS product on their platform. This means there are no extra fees for this transaction but you have to pay other charges as per your plan.
Just select the stock fill in the details and place the order as below.
4. How to place MIS order in Zerodha?
The process of placing an MIS order is the same as that of a CNC order, but as it is the intraday trade there must more specifications or inputs in the process of placing the order.
Following is the process of placing an MIS order in Zerodha:-
- Login in your Zerodha Kite Application.
- You will land upon the “Watchlist” tab on the screen.
- Select the stock you want to buy under MIS product on Zerodha.
- Then click on the ‘buy or sell’ option as per the requirements.
- Full-screen information for purchasing of the share will appear on the screen such as quantity, order type, bid price, etc. Fill in all the detail according to your requirements.
- Finally swipe “swipe to buy” at the bottom of the screen.
4.1. Four order-type options available with the MIS product.
- Market order :- If you select this option, the order will be executed at the current market price.
- Limit order:- In the limit order the transaction will be executed at the desired price you inputted on the “bid price” section.
- SL order:- SL order full form is ‘stop loss order’ as the name suggest it helps in limiting losses . While using SL order a person have to set the ‘bid price’ as well as the “trigger price” which means after this price hits the transaction will be executed.
- SLM order:- SLM order full form is ‘stop loss market’. Under this order a person has to select the “trigger price”. At which he will buy and sell shares.
To learn more about SL & SLM go to stocksfetcher.com
There a more advanced options available like rglr, co, amo also validity, etc. whose data can be imputed as per an individual’s requirement.
5. How to convert CNC to MIS in Zerodha and vice versa?
An investor can convert MIS position to CNC and vice versa by following the below steps:-
- Go to ‘portfolio’ tab in the center of the screen on the Kite App..
- Click on the ‘positon’ tab.
- Tap on the three dot (…) to open the options.
- Then press ‘convert’ then make the desired changes in the product type.
Note:– If you want to covert the position from MIS to CNC you need to first check whether there is sufficient margin in the account to complete the trade.
5.1. Does Zerodha charge for converting CNC to MIS?
There are no extra charges for the change in any product type in Zerodha. At the end of the day, the charges will be decided as per your plan for whichever product type option your chosen accordingly.
1. Can I use CNC for intraday?
Yes, you can use ‘CNC’ for intraday trading but it of no use as you have to manually exit the position before the end of the trading day i.e. by 3:30 pm. So this way the trade eventually gets converted into MIS.
2. Can I convert from CNC to MIS Zerodha?
Yes, you can convert CNC to MIS by going in the position tab -> Click on the instrument you want to convert -> Click on the three dots (…) for options -> Then click on convert as per your requirement.
3. Is there any charge to convert MIS to CNC on Zerodha?
No, there are ZERO (0) charges to convert from MIS to CNC in Zerodha.
I (financialwizardindia.com) am not a SEBI registered investment advisor. This article is for information purposes only.