What is the meaning of CNC, MIS, and NRML?

Cash and Carry (CNC) is utilized for equity trading based on delivery. In delivery-based trading, individuals can retain stocks overnight for the duration they prefer. When opting for the CNC product type, there is no allowance for leverage, and positions will not be automatically closed. Short positions cannot be taken using CNC. Nevertheless, individuals can sell the stocks from their holdings when utilizing this specific product type.

Margin Intraday square-off (MIS) is used to obtain intraday leverage. This product type, MIS, is specifically designed for trading in Equity, Equity F&O, Commodity futures, and Currency futures. Traders can utilize Alice Blue’s margin calculator to ascertain the margins available for intraday trading through the MIS product type. It’s essential to note that any open positions under the MIS product type will be automatically closed if not manually closed before the scheduled auto-square-off time.

Normal (NRML) is utilized for holding futures and options positions overnight, enabling traders to retain their positions until the derivatives’ expiry. It’s important to note that intraday leverages are not applicable when utilizing the NRML product type. Moreover, NRML is also utilized for currency trading with a delivery-based approach.

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