Product and Order Type Related Queries
- What does CNC, MIS, and NRML mean?
- What are limit and market orders?
- Why doesn’t my Limit order executesometimes even if the priceshown on screen?
- What are bracket orders?
- What are cover orders andhow to use them?
- What are stoploss orders andhow to use them?
Margin Intraday Square Off (MIS) is used for trading Intraday Equity, Intraday F&O, and intraday Commodity Trading. All these positions will be squared off at 3:20 pm (which is subject to change as per our RMS policy)
Cash and Carry (CNC) is used for delivery-based trading of equity. Using CNC your position will not be auto squared off. You will not be able to sell unless you hold a particular stock in your DEMAT account.
Normal (NRML) is used for overnight trading of futures and options. If he uses NRML, then he would not have to worry about auto square-offs.
Limit order is a type of order where one wishes to buy or sell scrip (stock/ index) at a certain price. In limit order price can be assured but the execution is not.
While placing a limit order one needs to place a specific price for buying or selling. In case of buying your order will only get executed below or at the price you have specified (Limit) while placing likewise while selling your order will get executed above or at the price you have specified.
A market order is an order to buy or sell a security immediately. This type of order guarantees that the order will be executed but does not guarantee the execution price. A market order generally will execute at or near the current bid (for a sell order) or ask (for a buy order) price. However, it is important for investors to remember that the last traded price is not necessarily the price at which a market order will be executed.
Orders are executed on the exchange on a first come first serve basis. It means that if there are multiple bids placed on a certain price, and there is only one offer to counter it, then the order will be executed for the person who placed the bid first.
Bracket order (BO) is a type of order where you can enter a new position along with a target/exit and a stop-loss order. As soon as the main order is executed, the system will place two more orders (profit-taking and stop-loss). When one of the two orders (profit taking or stop loss) gets executed, the other order will get canceled automatically.
Bracket orders can be used only for intraday trades.
Cover order is a type of order where putting a stop loss along with the initial order is compulsory. The buy/sell order is either a market order or limit order and a compulsory Stop Loss order, in a specified range. This Stop Loss Order cannot be canceled.
Cover orders can be used only for intraday trades.
A Stop Loss order is a buy/sell order which is placed to limit the losses in case the market moves in other direction than what you predicted. For example, you have bought a stock at Rs. 1000 and you want to limit your loss at Rs. 900, you can place an order in the system which will sell the stock as soon as it comes to Rs. 900.
There are two type of Stop-Loss orders:
- SL order (Stop-Loss Limit): In this type of order, you set a price at which you want to sell and a trigger price (trigger price > price). As soon as the market prices reaches the trigger price, your stop-loss order will be placed.
- SL-M order (Stop-Loss Market): In this type of order, you set a trigger price and when price is triggered, a sell market order will be sent to the exchange.