CNC, MIS and NRML: Full Form, Meaning, Differences, Which One to Choose & When

CNC, MIS, and NRML are three common product types used when placing trades through an Indian stockbroker. For a beginner, these terms can be confusing. The main difference is simple: CNC is mainly used for equity delivery, MIS is designed for intraday trading, and NRML is generally used to carry derivative positions overnight.

The product type you select can affect your margin requirement, holding period, and the way your broker manages the position. So, choosing the right one matters before you place an order.

Pro Tip: Use Strike Money for real-time market charts and technical analysis.

Product Type	Leverage	Auto Square-off	Holding Period	Typical User
CNC	Usually no intraday leverage for delivery	No	Potentially unlimited	Investors and swing traders
MIS	Intraday margin may be available	Yes, based on broker rules	Same trading day	Intraday traders
NRML	Exchange/broker margin applies	No daily intraday square-off	Can be carried forward, subject to contract rules	Positional F&O traders

In this guide, we'll explain CNC, MIS, and NRML in simple terms. You'll also learn how they differ, when to use each one, how leverage works, what happens during auto square-off, and how MTF fits into the picture.

What Is CNC (Cash and Carry)?

CNC stands for Cash and Carry. It is a product type generally used for buying shares for delivery and holding them beyond the trading day.

You can hold CNC shares for days, weeks, months, or even years. Unlike an intraday product, CNC doesn't normally provide intraday leverage for equity delivery. You generally need to pay the full value of the shares.

For example, suppose a stock is trading at ₹1,658 and you want to buy 1 share for delivery. With a typical CNC setup, you need approximately ₹1,658 before applicable charges.

CNC is commonly used for:

Long-term investing
Swing trading
Delivery-based equity trading
BTST-style trades, subject to settlement and broker rules

If you buy shares using CNC and keep them overnight, they can move into your demat holdings after settlement.

Can You Short Sell Using CNC?

You generally can't create a fresh short position in an equity stock using CNC.

CNC is designed for delivery-based buying and selling of shares you own. If you already hold the shares in your demat account, you can sell them using the delivery product.

For example, if you own 100 shares of a company, you can sell those 100 shares through the delivery product. You can't normally sell 100 shares you don't own and carry that equity short position overnight through CNC.

What Is MIS (Margin Intraday Square-off)?

MIS stands for Margin Intraday Square-off. It is a product type designed for intraday trading.

The key word here is intraday. You open the position during the trading session and normally need to close it on the same day.

MIS may provide intraday margin or leverage, but the exact amount isn't fixed. It can vary based on the stock, segment, broker, market conditions, and applicable exchange or regulatory requirements.

For example, suppose a stock is trading at ₹1,658. If your broker requires ₹331.60 as margin for an eligible intraday position, your effective exposure would be about 5 times the margin used.

That doesn't mean every stock will offer 5x leverage. Margin availability can change at any time.

MIS can be available across several segments, depending on the broker, including:

Equity
Equity futures
Equity options
Currency derivatives
Commodity derivatives

The exact product availability depends on the broker and instrument.

What Is NRML (Normal)?

NRML stands for Normal. It is generally used for carrying futures and options positions beyond the trading day.

Unlike MIS, NRML isn't designed around mandatory same-day square-off. A trader can carry an eligible F&O position overnight, subject to margin requirements, expiry, broker policies, and the contract's settlement rules.

For example, suppose you buy an index futures contract and want to hold it for several days. NRML may be the appropriate product type when your broker supports it for that contract.

NRML generally requires the applicable exchange and broker margin rather than the intraday margin offered through MIS.

What's the Difference Between CNC, MIS and NRML?

The biggest difference is the purpose and holding period.

Feature	CNC	MIS	NRML
Full form	Cash and Carry	Margin Intraday Square-off	Normal
Mainly used for	Equity delivery	Intraday trading	Carry-forward F&O
Leverage	Generally no delivery leverage	Intraday margin may be available	Normal exchange/broker margin
Auto square-off	No daily intraday square-off	Yes, based on broker rules	No daily intraday square-off
Holding period	Potentially unlimited	Same trading day	Can be carried forward
Best suited for	Investing and swing trading	Intraday trading	Positional F&O trading

So, CNC, MIS, and NRML aren't simply three different levels of leverage. They serve different trading purposes.

Which Product Type Should You Use?

The right product depends mainly on what you're trying to do with the trade.

Purpose	Product Type	Best For
Hold stocks for days, months, or years	CNC	Investing and swing trading
Buy or sell stocks only during the same trading day	MIS	Intraday equity trading
Carry futures or options overnight	NRML	Positional F&O trading
Trade eligible futures or options only during the same day	MIS	Intraday F&O trading

First, decide how long you want to hold the position. Secondly, check which segment you're trading. Finally, check the margin and product rules shown by your broker before placing the order.

This is about product mechanics, not investment advice. Your trading strategy, capital, and risk tolerance are separate decisions.

How Much Leverage Do You Actually Get With MIS?

There is no single fixed MIS leverage figure.

The margin available for an intraday trade can depend on the stock, its volatility, liquidity, applicable exchange margins, and the broker's own risk controls.

A broker may offer different margins for different stocks. The same broker can also change the available margin when market conditions change.

Earlier, some brokers offered much higher intraday leverage. Regulatory changes around peak margin collection significantly tightened the way brokers could provide leverage. Brokers now have to collect and report applicable margins under the regulatory framework.

So, don't assume that every MIS order gives 5x, 10x, or 20x leverage.

The safest approach is to check the broker's margin calculator immediately before placing the trade.

What Is MTF, and How Is It Different From CNC and MIS?

MTF stands for Margin Trading Facility.

MTF allows you to buy eligible shares for delivery by paying part of the purchase value while the broker funds the remaining amount, subject to its rules.

This makes MTF different from both CNC and MIS.

CNC generally means delivery without borrowing from the broker.

MIS means an intraday position where the broker may provide intraday margin.

MTF combines delivery with funding. You can carry the shares, but you pay interest on the amount funded by the broker.

For example, suppose an eligible stock costs ₹1,00,000 and your broker requires you to provide ₹25,000. The broker may fund the remaining ₹75,000 under its MTF rules. You then pay interest on the funded amount.

The exact margin, interest rate, eligible stocks, and charges vary by broker. For example, Zerodha currently lists MTF interest at 0.04% per day, while Groww currently lists 14.95% per annum.

This is why you shouldn't compare MTF only by its leverage. The interest cost matters too.

What Happened to Bracket and Cover Orders?

Bracket Orders (BO) and Cover Orders (CO) were popular intraday products because they combined an entry with risk-management instructions such as a compulsory stop-loss.

Regulatory changes around peak margin requirements reduced the scope for the very high leverage that made these products attractive.

As a result, many brokers discontinued these products and shifted traders toward simpler intraday products such as MIS.

The important point is that MIS doesn't automatically give you the same leverage that older BO or CO products once offered.

When Are Intraday Positions Auto Squared Off?

MIS positions are generally subject to broker-defined auto square-off timings.

The exact time isn't universal. It can vary by broker, segment, stock, market conditions, and exchange session.

There is also an important change after the introduction of the Closing Auction Session (CAS). NSE introduced CAS for eligible cash-market stocks from August 3, 2026. For F&O stocks, continuous trading ends at 3:15 PM and the closing auction session runs afterward.

For example, Zerodha currently lists these timings for its intraday positions:

CAS stocks: 3:12 PM
Non-CAS stocks: 3:25 PM
F&O contracts: 3:26 PM

These are Zerodha's timings, not a universal rule for every broker. Brokers can change their RMS timings based on their risk policies.

So, don't wait until the final minute. If you want to control your exit price, close the MIS position yourself before your broker's stated cut-off.

What Does an Auto Square-off Cost You?

An auto square-off can create two types of costs.

Auto Square-off Charge

Many brokers charge a separate fee when they close an intraday position for you.

For example, Zerodha currently charges ₹50 plus 18% GST for an auto-square-off order. Other brokers can have different charges.

Slippage

The second cost is less obvious.

When a broker closes a position because the cut-off has arrived, you don't control the exact execution price. In a fast-moving market, the final execution can differ from the price you expected.

That difference is called slippage.

This is why auto square-off should be treated as a broker risk-control mechanism, not as part of your trading strategy.

Why Else Might Your Broker Square Off Your Position?

A broker doesn't have to wait for the normal intraday cut-off in every situation.

A position can be closed earlier because of:

A margin shortfall
Significant losses
Broker risk-management rules
Extreme market volatility
A stock hitting a circuit or becoming restricted
A broker-specific RMS decision

The exact trigger varies by broker.

For example, a broker may have its own loss thresholds for MTF or other leveraged positions. Zerodha's current RMS policy shows that it can square off MTF positions in certain debit or loss situations.

So, never assume that having an open position means you'll always be allowed to keep it until the normal market close.

How Do You Convert MIS to CNC or NRML?

Some brokers allow you to convert an open position from one product type to another.

The process usually starts from the Positions section. Select the open position, choose the conversion option, and select the target product type if your broker supports the conversion.

The conversion isn't automatic in every situation.

For example, converting an equity MIS position to CNC generally requires enough funds to support the delivery position. Converting a derivative position to NRML requires the applicable margin.

Always check the available margin before converting.

By When Must You Convert?

If you want to carry an MIS position forward, you must convert it before your broker's applicable intraday cut-off.

The exact deadline varies by broker and segment.

After the cut-off, the broker's system may begin the square-off process. You shouldn't depend on a last-minute conversion because a delay can result in an unwanted exit.

What Happens If You Don't Have the Funds?

The conversion can fail if you don't have enough funds or margin for the new product type.

For example, suppose you bought ₹1,00,000 worth of shares using MIS margin. Converting that position to CNC may require the full delivery value, subject to the broker's rules.

If you don't have enough funds, the conversion won't solve the margin problem. The position can remain subject to the broker's intraday square-off process.

Can You Short Sell Using CNC?

You generally can't create a fresh overnight short position in an equity stock using CNC.

If you already own shares, you can sell those holdings using the delivery product. If you don't own the shares, a normal CNC sell order won't create an equity short position that you can simply carry overnight.

For a regular retail intraday equity short trade, MIS is commonly used when supported by the broker.

There is also a separate securities lending and borrowing mechanism for eligible delivery-based short selling. So, saying that all equity short selling is possible only through MIS would be too broad.

Which Product Type Costs You More?

There isn't one product type that is always the most expensive.

The total cost depends on brokerage, STT, exchange transaction charges, GST, stamp duty, DP charges, and other applicable fees.

For equity delivery, DP charges can apply when shares are debited from your demat account. For example, Zerodha currently lists ₹15.34 per scrip on a sell transaction, while other brokers can charge different amounts.

Intraday trades generally don't create a delivery debit from your demat account, so a normal intraday equity trade doesn't have the same DP charge structure.

STT Difference Between Delivery and Intraday

For equity delivery, STT is charged on both the purchase and sale sides at the applicable rate.

For equity intraday trades, STT applies differently and is generally charged on the sell side.

For example, if the applicable delivery STT rate is 0.1%, a ₹1,00,000 delivery purchase creates ₹100 of STT and a ₹1,00,000 delivery sale creates another ₹100.

That gives ₹200 in total STT.

For a ₹1,00,000 equity intraday trade, the applicable STT is charged according to the intraday rate on the sell transaction.

Always check the latest statutory rates because tax rules can change.

Why Is STT Higher on a CNC Sell?

The reason is linked to how equity delivery is taxed.

In a delivery transaction, shares are actually transferred between the buyer and seller. The applicable STT is therefore different from the rate used for an intraday equity transaction.

The important point for traders is simple: delivery and intraday trades don't have identical tax and transaction-cost structures.

When Do DP Charges Apply?

DP stands for Depository Participant.

A DP charge can apply when securities are debited from your demat account, usually when you sell delivery holdings.

The amount isn't based simply on how many shares you sell. It can be charged per scrip or transaction according to your broker and depository structure.

For example, Zerodha currently lists a DP charge of ₹15.34 per scrip for eligible equity sell transactions.

So, always check your broker's current charge sheet rather than assuming every broker charges the same amount.

How Is Each Product Type Taxed?

CNC, MIS, and NRML can have different tax treatment depending on the nature of the transaction.

The important distinction is between capital gains and business income.

Product	Typical Income Head	General Treatment
CNC equity held as investment	Capital gains	STCG or LTCG, depending on holding period
MIS equity intraday	Speculative business income	Taxed under business-income rules
NRML F&O	Non-speculative business income	Generally taxed as business income

For listed equity shares, the applicable capital-gains rate depends on the holding period and current tax law.

For example, under the current framework, eligible listed-equity STCG covered by Section 111A is taxed at 20%, while eligible LTCG under Section 112A is taxed at 12.5% on gains above the applicable annual exemption threshold.

F&O trading is generally treated as non-speculative business income, while eligible equity intraday trading is treated as speculative business income.

Your actual tax position can depend on your trading activity, classification, other income, and tax filing circumstances. For frequent trading, professional tax advice is worth considering.

Why Can't You Use MIS on Some Stocks?

There are several reasons why MIS may not be available for a particular stock.

1. Exchange Restrictions

The stock may be subject to a trading restriction or surveillance measure.

2. Trade-to-Trade Settlement

Some securities are placed under trade-to-trade settlement. Intraday netting may not be available in the same way as normal equity trading.

3. Broker Risk Controls

Your broker may restrict intraday trading or leverage for a stock because of volatility, liquidity, surveillance status, or its own risk-management policy.

This is why a stock can be available for CNC but unavailable for MIS.

What Do Other Brokers Call CNC, MIS and NRML?

CNC, MIS, and NRML became especially familiar to Indian traders through platforms such as Zerodha's Kite.

However, these names aren't necessarily identical across every broker.

You may see terms such as:

Delivery or Long-term for CNC
Intraday for MIS
Overnight or Carry Forward for NRML

The underlying idea is more important than the name.

If you're unsure, check the product description shown on your broker's order screen before placing the trade. Zerodha, for example, describes CNC as Longterm, MIS as Intraday, and NRML as Overnight.

Which Product Type Do You Use for BTST?

BTST means Buy Today, Sell Tomorrow.

Traders commonly use the delivery product for BTST because the position is intended to go beyond the day of purchase.

However, settlement mechanics have changed over time. Indian equity markets operate with T+1 as the standard settlement framework, while an optional T+0 settlement mechanism also exists for eligible securities and participants.

So, don't assume that every BTST trade follows exactly the same settlement process.

If you're using MTF for a BTST-style trade, remember that the funded amount can attract interest according to your broker's MTF terms.

Why Was Your Order Rejected?

An order can be rejected for several reasons.

The most common ones include:

Insufficient funds or margin
Your account doesn't have enough funds for the selected product.
Wrong product type
For example, you try to sell a stock using CNC without having the required holding.
Exchange restrictions
The stock may be under surveillance, trade-to-trade settlement, a derivatives restriction, or another exchange-level restriction.
Price-band or trading restrictions
The price may be outside the allowed range, or trading may be temporarily halted.
Broker RMS restrictions
Your broker may block the order because of volatility, liquidity, margin, or account-level risk controls.

When an order gets rejected, don't immediately place the same order again. First read the rejection message. It usually tells you what needs to be corrected.

What Mistakes Do Traders Make With Product Types?

Choosing the wrong product can create unnecessary costs or force an unwanted exit.

Here are five common mistakes.

1. Ignoring Auto Square-off Charges

Some traders leave MIS positions open until the broker closes them automatically.

That can result in an additional charge. For example, Zerodha currently charges ₹50 plus GST for each auto-square-off order.

2. Assuming CNC and MIS Are Taxed the Same Way

They aren't necessarily treated the same way for income-tax purposes.

Equity delivery held as an investment can generate capital gains, while equity intraday trading is generally treated as speculative business income.

3. Confusing MTF With CNC

CNC generally means delivery without broker-funded leverage.

MTF also gives delivery, but part of the purchase can be funded by the broker. That funding comes with interest and other conditions.

4. Converting MIS Without Checking Margin

An MIS position may require much less upfront margin than a CNC position.

If you try to convert the position without enough funds, the conversion can fail.

5. Trying to Short Sell Through CNC

CNC is designed for delivery-based equity transactions. A fresh equity short position can't normally be created through a standard CNC sell order.

Final Takeaway

CNC, MIS, and NRML are not interchangeable product types.

Use CNC when you want to buy equity for delivery and potentially hold it beyond the trading day.

Use MIS when you are taking an eligible intraday position and plan to close it within the same trading session.

Use NRML when you want to carry an eligible futures or options position beyond the trading day.

The biggest mistake is choosing the product based only on the amount of margin required. Look at the holding period, leverage, charges, margin requirements, and broker rules together.

Most importantly, check your broker's current product rules before placing the order. Margin, auto-square-off times, charges, and eligible instruments can change over time.