CNC vs MIS vs NRML: Product Types Explained
CNC, MIS and NRML tell your broker how to treat a position — delivery, intraday or carry-forward derivatives. Choosing the wrong one can cost you.
Why product type matters
When you place an order you choose both an order type (market, limit, stop-loss — see types of orders) and a product type. The product type tells the broker how much margin to block and when the position must be closed.
Names vary by broker. The labels below are the ones used by many Indian brokers; your app may call them "Delivery", "Intraday" and "Carry forward".
| Product | Used for | Margin | Closing |
|---|---|---|---|
| CNC (Cash and Carry) | Equity delivery | Full value paid | Hold as long as you like |
| MIS (Margin Intraday Square-off) | Intraday in equity and F&O | Intraday margin | Auto squared off before close |
| NRML (Normal) | Carry-forward F&O and commodity | Full SPAN + exposure margin | Hold until expiry or exit |
| MTF (Margin Trading Facility) | Leveraged delivery | Part paid, rest funded with interest | Hold within broker's MTF rules |
CNC
Use CNC when you want to own shares. You pay the full amount; the shares are credited to your demat account on T+1. When you sell, the broker debits the shares and a DP charge applies.
MIS
Use MIS for positions you intend to close the same day. The broker blocks only the intraday margin. If the position is open near the broker's square-off time (typically in the last 10–20 minutes of the session), it is closed automatically and an auto square-off fee may be charged.
NRML
Use NRML for futures and options you want to hold overnight. The full margin required by the exchange must be available. Option buyers pay the full premium.
Common mistakes
- Buying shares in MIS by accident – you may be squared off at a loss when you meant to invest.
- Holding F&O in MIS – positions are closed at the end of the day.
- Ignoring margin shortfall – exchange penalties can apply if margin falls short.
See also intraday vs delivery trading and what is margin trading.
Frequently asked questions
Is CNC only for equity?
Yes, CNC is used for cash-market equity (and similar instruments like ETFs) held for delivery.
Can I place a CNC sell order for shares I don't own?
No. Selling in CNC requires the shares to be in your demat account; short selling is only possible intraday.
Sources
- Zerodha – Charges (statutory charges table) — accessed 30 September 2026
- SEBI Investor website — accessed 30 September 2026