Are you curious to know what is CNC in zerodha? You have come to the right place as I am going to tell you everything about CNC in zerodha in a very simple explanation. Without further discussion let’s begin to know what is CNC in zerodha?
In the world of stock trading and investment, Zerodha stands out as one of India’s most popular and user-friendly brokerage platforms. To maximize the benefits of Zerodha’s features, it’s crucial to understand the various order types and trading options available. One such trading facility offered by Zerodha is CNC, which stands for Cash and Carry. In this blog post, we’ll delve into what CNC means in Zerodha and how it can be a useful tool for investors.
What Is CNC In Zerodha?
CNC, or Cash and Carry, is a specific order type available on the Zerodha platform that is primarily used for delivery-based trading in stocks and exchange-traded funds (ETFs). This order type is designed for investors who intend to hold their positions for an extended period rather than engaging in intraday trading.
Key Features And Benefits Of CNC Trading In Zerodha
- Delivery-Based Trading: CNC orders in Zerodha are meant for investors who wish to buy and hold stocks or ETFs for more than one trading day. When you place a CNC order, you are essentially buying the stock or ETF for delivery to your Demat account.
- No Need for Full Margin: Unlike intraday trading, where you need to have the full margin amount in your trading account, CNC orders require only a fraction of the margin. This makes it more accessible for investors with limited funds.
- No Time Limit: CNC orders do not have a time limit or an expiry date. You can hold your positions for as long as you like, whether it’s days, weeks, months, or even years.
- Investment Flexibility: CNC trading allows you to take advantage of long-term investment opportunities. You can build a diversified portfolio of stocks and ETFs with the intention of benefiting from potential capital appreciation and dividends.
- No Square-off Required: In intraday trading, you are required to square off your positions before the market closes. With CNC orders, there is no need to worry about daily trading deadlines.
How To Place CNC Orders On Zerodha?
Placing a CNC order on Zerodha is straightforward:
- Log in to your Zerodha trading account.
- Search for the stock or ETF you want to buy.
- Select the CNC order type when placing your buy order.
- Enter the quantity and price at which you want to buy the asset.
- Review the order details and confirm the order.
- Once the order is executed, the purchased assets will be credited to your Demat account.
CNC (Cash and Carry) trading in Zerodha is an excellent option for investors looking to build a long-term portfolio of stocks and ETFs. It offers the flexibility to hold assets for an extended period without the constraints of intraday trading. By understanding how CNC orders work and utilizing them effectively, investors can embark on their journey to building wealth through well-thought-out investments. However, as with any investment, it’s crucial to conduct thorough research and due diligence before making your investment decisions.
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Which Is Better CNC Or Mis?
Using CNC order type does not allow for short selling. Whereas MIS order type allows you to square off the position within the same trading day. a The brokerage charges of CNC order is lesser than MIS order. The risk associated with the CNC order is less as it allows you to hold the stock as long as you want.
Can CNC Be Sold Same Day?
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.
Which Is Better Intraday Or CNC?
The primary difference between MIS and CNC orders is that CNC is purely a delivery order, whereas MIS orders are intra-day orders which would be squared off by the broker before the closing of the market if the same is not done by that order executor himself.
Can I Sell CNC Stock Next Day In Zerodha?
Yes, CNC can be sold on the same day in Zerodha. Here is the list of charges that apply depending upon when you sold CNC: CNC (delivery) same day: Intraday brokerage charges. CNC (delivery) next day: Intraday brokerage charges.
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