CNC stands for Cash N Carry in the stock market. CNC is applied when purchasing a stock with the intention of holding it in your portfolio for more than one day.
We have already covered MIS (Margin Intraday Square-off) in detail in a separate article. Here we shall discuss all about CNC. CNC means Cash N (and) Carry. This is to do with the delivery of shares. What is the delivery of shares? We have it answered below. Read on.
Content:
- CNC Order
- CNC Order Margin
- Benefits of CNC Order
- Difference between CNC and MIS Order
- How to place CNC Order in Alice Blue?
- Quick Summary
CNC Order
CNC full-form in the share market is Cash N Carry. CNC is used when you are buying the stock to hold it in your portfolio for more than one day, unlike intraday orders in which the stock is sold the same day. Thus, CNC is used for delivery-based trade.
Delivery-based trade is when you want the company shares to reflect in your Demat account. The delivery of stock takes place after two days (T+2). It is then the shares reflect in your Demat account. When it comes to selling a stock, you have to have sufficient holdings in your Demat account.
Remember, CNC is just the product type. It does not restrict you from selling the stock on the same day. If a stock is in the open position in CNC type, you can still sell it, but the trade will be considered intraday, and the brokerage will be charged accordingly.
CNC Order Margin
Alice Blue provides up to 5 times the margin on CNC Order. For example, You can buy shares worth ₹ 50000 with only ₹ 10000. Also, we charge ZERO Brokerage on CNC Orders. Check out the detailed margin breakup of Alice Blue below:
| SEGMENT | CNC/NRML | MIS | CO | BO |
| CASH | 5X | 5X | N/A | 5X |
| NSE FUTURES | 1X | 1X | 1X | 1X |
| NSE OPTION BUY | 1X | 1X | 1X | N/A |
| NSE OPTION SELL | 1X | 1X | N/A | N/A |
| MCX | 1X | 1X | 1X | 1X |
| CDS | 1X | 1X | N/A | N/A |
Benefits of CNC Order
- There is no charge for executing CNC Orders.
- CNC orders are relatively safer because no margin play is involved.
- You get the delivery of the shares against the amount you have paid. In case losses happen, they will be restricted to the amount you paid, unlike MIS order in which you bear the losses on the margin money too.
Difference between CNC and MIS Order
- The major difference between CNC and MIS orders, as you may have understood by now, is in the timing of the trade execution. CNC orders are bought only if you want to hold the stock in your portfolio. This could be for more than two days to weeks, months, or even years. MIS orders are bought when you have to execute an intraday trade, that is, buying and selling the stock on the same day.
- Another major difference is that you don’t get a margin in the CNC type. For example, if you have ₹10,000 in your trading account, and the share price is ₹100 per share, you can only buy 100 shares of the particular stock in the CNC type. However, with an MIS order, you can buy shares for more than the amount you have in the trading account, depending on the margin your brokerage provides.
- The open positions are squared off automatically the same day in MIS order, not in CNC order, in which the delivery takes place after T+2 days.
- You can convert MIS order to CNC and CNC order to MIS.
Learn more about the difference between CNC and MIS orders.
How to place a CNC Order in Alice Blue?
Below are the steps that would help you place a CNC order easily.
- Choose the stock/F&O of your choice.
- Select whether you want to buy or sell the stock.
- Select CNC, which stands for Cash N Carry.
- Select whether you want to place a market order or a limit order.
- Enter the quantity and price (in case of limit order.)
- Enter stop loss value or trigger stop-loss tick size.
- Enter the trigger price at which you would like to pocket the gains.
To get a detailed understanding, watch our youtube video on How to Place orders on ANT MOBI.
We hope that you are clear about the topic. But there is more to learn and explore when it comes to order types, and hence we bring you the other important order types that you should know:
| After Market Order |
| Bracket Order |
| Cover Order |
| Limit Order |
| Market vs Limit Order |
| Sub Broker Terminal |
| Silver Micro |
Quick Summary
- CNC full-form in the share market is Cash N Carry. CNC is used when you are buying the stock to hold it in your portfolio for more than one day.
- Benefits of CNC Order
- There is no charge for executing CNC Orders.
- CNC orders are relatively safer because no margin play is involved.
- You get the delivery of the shares against the amount you have paid.
- CNC orders are bought only if you want to hold the stock in your portfolio.
- MIS orders are bought when you have to execute an intraday trade, that is, buying and selling the stock on the same day.
- The open positions are squared off suo motu the same day in MIS order, not in CNC order in which the delivery takes place after T+2.
