What do CNC, MIS, NRML, Intraday and Overnight orders mean?
What do CNC, MIS, NRML, Intraday and Overnight orders mean? Find a clear answer in this FAQ by 021 Trade.
In the context of trading on Indian stock exchanges like NSE and BSE, CNC, MIS, and NRML are order types offered by brokers that determine how a trade is executed and how long a position can be held.
At 021 Trade, orders are simplified into two categories: Intraday and Overnight.
Overnight Orders (CNC / NRML)
Overnight orders are used when you want to carry your position beyond the same trading day.
There is no leverage offered on this order type, and there is no automatic RMS square-off, which means you can hold the position overnight or for a longer period depending on your strategy.
This type of order can be used for:
- Equity delivery trades
- Derivative positions that you want to carry forward
Intraday orders are meant for trades that are opened and closed on the same trading day.
- Brokers may provide leverage of up to 5ร on eligible instruments under this order type.
- If the position is not squared off by the trader, it will be automatically squared off by the 021 Trade Risk Management System (RMS) between 3:20 PM and 3:30 PM on the same day.
Converting Positions
You can convert your positions between Intraday and Overnight depending on the available margin in your account.
For example, if you convert an Intraday position to Overnight, you must have sufficient funds to cover the full margin requirement after the leverage is removed.
