MIS vs NRML: The Stock Market is a place where individuals can increase their wealth in more than one way. They can make money in the stock market by taking up shares on a delivery position, trading in equity, futures, options, and commodity segment, and executing intraday trades.

But executing these trades requires the execution of different types of orders. In this article, we will be discussing the meaning of different order types in the stock market 

What Do CNC, MIS, And NRML Orders Mean?

Let’s first explore the various product kinds that are utilized to place orders before discussing MIS vs NRML orders.

CNC Orders (Cash And Carry Orders)

CNC stands for Cash and Carry orders and it is a type of order used to execute delivery trades in the equity segment. The order type is used for share buying stocks with the intention of holding it for more than one day for as long as we choose to.

The shares purchased through the CNC orders would require you to pay the full value of the trade, as no leverage is provided for this order type. These shares will get transferred to your Demat account after T+2 days.

It is important to note that, If the shares bought through CNC orders are sold on the same day, it is considered an intraday trade and the brokerage charges will be levied as per intraday trades.

MIS Orders (Margin Intraday Square Off)

MIS stands for Margin Intraday Square off. As suggested by its name, it is a type of product used for intraday trading in the Equity, F&O, and Commodities segments. MIS is mainly used by individuals because it provides individuals leverage in their trades.

The margins provided varies depending on each stock or each segment. But the thing about MIS orders is, it needs to be squared off by the end of the day. If the trades are not squared off manually, they will be automatically squared off.

Following are the timings after which intraday trades will be auto-squared off in each segment.

Equity/CashEquity DerivativesCurrency DerivativesCommodities
Auto square off time3:20 PM3:25 PM4:45 PM25 minutes before close

If individuals do not wish to square off their positions, they have the option of converting them into delivery or carrying forward trades.

NRML (Normal Margin Order)

NRML stands for Normal Margin order which is used for the purpose of overnight trading of futures and options. This product type allows individuals to carry their futures and options positions till the end of expiry.

Unlike MIS orders, no leverage is provided for using this product type. The total margins applicable for a derivative contract would be the total margin which is SPAN+Exposure margin.

The minimum amount that is blocked by the stockbroker in order to facilitate the buying and selling of F&O contracts as per the exchange’s mandate is referred to as Span Margin.

Exposure margin refers to the amount that is blocked over and above the span margin in order to ensure safety against any losses.

Here’s an image showing the span margin and the exposure margin required when you buy a futures contract with a net quantity of 250 shares.


Here, you can see that the span margin and exposure margin make up Rs. 1,02,755 and Rs. 24,101 of the overall margin of Rs. 1,26,856.

Also Read: Technical Analysis Vs Price Action – Which One’s The Better Bet?


Now that we have covered the meaning of each product type, let us now cover MIS vs NRML orders.

MIS order is used for executing intraday tradesNRML order is used to take positions that you can hold overnight and carry forward for the future
MIS orders can be executed in Equity, F&O, Currency, and Commodity segmentNRML orders are only applicable for F&O, Currency, and Commodity segment
Leverages are available on MIS ordersNo Leverage is available on NRML orders
MIS positions should be squared off on the same dayNRML positions can be held till the end of the expiry
MIS positions will automatically get squared off by the end of the dayNRML orders will not be automatically squared off

In Closing

In this article, we discussed the meaning of CNC, MIS, and NRML orders and we also covered MIS vs NRML orders. CNC, MIS, and NRML orders are the basic terminologies that every individual should know while starting their journey in the stock market. Knowing the holding duration and margins required in each type of order can help us invest or trade according to our requirements.

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