What is a CNC Order in Trading in Stock Markets?
The full form of CNC is Cash N Carry and the CNC product is a non-intraday product used in the Equity Segment of BSE & NSE. It is used for buying or selling shares for delivery. The shares purchased using the CNC option would be transferred to your demat account after T + 2 days and shares sold using the CNC option would be transferred from your demat account to fulfil your sale obligations with the exchanges. For example, if one wishes to buy shares of a company and sell it after a few days, one should use the CNC as the product type.
CNC Order Margin
As the name suggests, in CNC the traders or investors will get no leverage for this product or a leverage of 1x. So if somebody puts Rs. 1000, he can buy shares only for Rs 1000 and no multiplier would be given. However, the upside for this is that since one has paid the full amount for the shares purchased, there would be no RMS square off when the shares are purchased using CNC. All the shares purchased would be sold on the instance of the trader or investor. If required, shares purchased in CNC can be sold intraday as well and the brokerage would be charged for intraday only. However, please note that for intraday short selling CNC option cannot be used. The RMS system will disallow selling of shares under the CNC option if the shares are not available in the client’s demat account. Trades under CNC can be converted to MIS from the position book.
In the Samco NEST Trader, the option to select CNC orders appears in the Product Type field.
What is the difference between CNC orders vs MIS orders?
- The fundamental difference between CNC orders and MIS orders is that CNC orders are delivery orders whereas MIS orders are purely intraday orders and in case the user doesn’t square off MIS orders sou motto, the same shall be squared off by the Risk Management Systems
- CNC orders have no margin multipliers whereas additional leverage and margins are available with MIS orders. Check out the margin calculator to compare MIS and CNC margins.
Alternative order types in the Cash Segments – i.e. BSE Cash segment and NSE Cash segment
- MIS orders which are intraday orders and will get squared off at 3.15 PM prior to market close. To check margins with MIS orders, check the margin calculator.
- NRML orders which are positional orders in the BSE Cash segment and NSE Cash segment
- Bracket Orders
- Cover Orders
To begin investing and trading with CNC orders in BSE cash and CNC orders in NSE cash segments, open a Free trading and demat account today.
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kindly explain me sell price in case of cnc order. how it is decided?
can i sell cnc type at limit price? how?
LETME KNOW RATE OF BROKERAGE DELIVERY & INTRADAY & PLEASE STATE WHETHER YOU ARE GIVING RESEARCH CALLS FORLONG TERM ?
What is the process for pay out???is there any time frame or can pay out any time from any place???
Please clarify on NRML, MIS & CNC type trade with difference in each type of trade.
Good article.
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I want to sell 68 ashok layland shares what I holding cash and carry so and I can’t sell single shares through samco app pls cut my position and resolve the problem early as possible and thanking you sir/madam.
Regards,
NAVEEN . N
Dear Mr. Naveen, thank you for getting in touch with us. To square-off your positions in CNC (cash & carry) product type, you need to submit your POA (Power of Attorney) to us. We need the confirmation in the form of physical documents with your signature on it.
If you haven’t submitted your POA, you may only be allowed to sell your holding by generating an OTP from your back-office page.
We hope this resolves your queries. If you have any more queries or issues, feel free to contact us; we’re happy to help you. Thank you for your valuable time. Have a great day ahead!
How do i squareoff cnc position?
Hi Pranita, Select the open position which is required to be squared off and click on the button.
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