CNC & MIS
In the stock market, CNC full-form is Cash & Carry (CNC), and MIS full-form is Margin Intraday Square off. (MIS)
Investing in the stock market can be a challenging and complex endeavor, especially for beginners. One of the most important concepts to understand in share trading is the meaning of CNC, which stands for Cash and Carry. In this article, we will explain what CNC means and how it can be used in share market trading.
What is CNC?
CNC’s full form in the share market is Cash and Carry. It is a trading facility that allows investors to buy and hold shares for an extended period, using their available cash and holding them in a Demat account until they are sold. CNC trades can be done for any time duration, ranging from a few days to even several years.
How Does CNC Work?
CNC trades allow investors to take ownership of shares and hold them in their demat account until they decide to sell them. The shares bought under the CNC facility cannot be sold on the same day, and investors need to wait until the shares are credited to their demat account. This makes CNC trades suitable for long-term investors who want to hold their shares for a more extended period.
Difference between CNC and Intraday Trading
Intraday trading refers to buying and selling shares on the same day, while CNC trading allows investors to hold shares overnight or even for an extended period. CNC trades are considered safer than intraday trades as they provide investors with enough time to analyze the market and make informed decisions about buying and selling shares.
Advantages of CNC Trading
CNC trades are popular among long-term investors for several reasons. Some of the advantages of CNC trading include:
- Lower Risk: As CNC trades are held for an extended period, investors have more time to analyze market trends and make informed decisions about buying and selling shares.
- Reduced Brokerage: CNC trades usually have lower brokerage charges than intraday trading, making them a more cost-effective option for investors.
- Suitable for Beginners: CNC trading is ideal for beginners as it allows them to invest in the share market without worrying about the volatility of intraday trading.
Conclusion
CNC trading is a trading facility that allows investors to buy and hold shares for an extended period, using their available cash and holding them in a Demat account until they are sold. It is a safer and more cost-effective option than intraday trading and is suitable for beginners who want to invest in the stock market.
Investors should always conduct thorough research and analysis before making any investment decisions. We hope this article has helped you understand the meaning of CNC in the share market and how it can be used in trading.
