Nrml vs Mis & What is MIS, NRML, IOC, CNC? Best Answer 2021

Trading is full of short forms nowadays as technology is growing day and night. We also need to stay updated with them. Now when you look at your trading screens there are many short forms written on the buying and selling window. Many people try to search different terms like Nrml Vs Mis, what is MIS or ioc etc.

To clear your confusion in this post we will discuss various terms related to your buy and sell window which you see whenever you buy or sell any stock, commodity or index.

What is MIS?

The full form of MIS in trading is Margin Intraday Square Off order. It is a trading strategy that is utilized for intraday trading in equity, F&O, and commodity. Depending on the share you are trading, the brokerage firms provide you intraday leverage ranging from 2 to 10 times.

For F&O, the margins needed will be 50 percent of the total margin required (SPAN + Exposure) for indices and securities contracts. However, When you purchase Options, mostly brokerage firms don’t offer margins.

MIS Timings

You can open an intraday position starting from 9:15 am on both exchanges in the stocks which are available for intraday. There are few stocks in which exchanges don’t allow intraday trading.

While You need to close your intraday position before 3:20 p.m in most of the online brokerage firms. Beginning from 3:20 p.m. to 3:25 p.m. all positions under the EQ MIS and F&O MIS will be immediately squared off if not closed.

Brokerage firms like Zerodha are charging a penalty of INR 50/- Per order if you don’t square off your position.

What is NRML?

The full form of NRML in trading is Normal order. It is an approach of trading equity utilized for overnight trading of futures and options. If the customer doesn’t want any additional leverage, he can use NRML feature to open a position and avoid auto square-offs.

NRML enables you to carry forward the position and hold it until the monthly expiry. The NRML Feature is also utilized for delivery-based Forex trading.

What is CNC?

The full form of CNC is Cash and Carry. It is an approach of trading equity that is based on delivery. You will not get any leverage if you are using the CNC option. However, Your position is not automatically squared off and you can keep them for the long term.

You will be unable to sell using the product code CNC unless you have the relevant stock in your DEMAT account. Please keep in mind that If you use CNC to buy and sell a share on the same day, the transaction is still recognized intraday.

What is IOC?

IOC — An Immediate or Cancel (IOC) order enables a Trading Individual to purchase a Stock as soon as the order is registered into the market or the order will be withdrawn if there is any supply and demand issue at mentioned price.

The order can be partially matched, and the unmatched segment of the order is instantly withdrawn.

Originally published at https://profitmust.com on May 10, 2021.