MIS Order Type
MIS, short for Margin Intraday Square-off, is the product type you choose when you want to take a position only for the day. Your broker offers higher leverage in exchange for one condition — the position must be closed before the market shuts. If you forget, the broker’s risk system squares it off automatically.
Key takeaways:
- MIS is an intraday-only product available across equity, F&O, currency and commodity segments.
- Brokers offer leverage (often 5x or more) on MIS orders so you can take larger positions with the same capital.
- Any open MIS position is auto-squared-off at a fixed cut-off time, usually 3:15–3:20 p.m. for cash equity.
- Profits and losses settle the same day; you cannot carry MIS positions to the next day.
- MIS is meant for active traders, not investors looking for delivery.
What MIS means in your order window
When you place a buy or sell order on Lemonn or any other Indian broker, you have to pick a “product type”. The three you will see most often are CNC (delivery), NRML (carry-forward F&O) and MIS (intraday). Choosing MIS tells the broker two things: first, you are not interested in taking delivery of the shares; second, you accept that the position will be closed before the close of trading hours.
Because the position is automatically flattened the same day, the broker is exposed to far less risk than a delivery trade. That is why MIS attracts lower margin requirements — and therefore higher effective leverage.
How leverage works under MIS
Suppose Reliance is trading at ₹2,500 and you have ₹25,000 in your trading account. Under CNC, you could buy ten shares. Under MIS, your broker might require only 20% margin, letting you buy fifty shares of the same stock — five times the exposure for the same capital.
Leverage cuts both ways. A 1% move in your favour turns into a 5% profit on capital; a 1% move against you wipes out 5%. Indian regulators have steadily reduced MIS leverage in cash equity to protect retail traders, but it still beats delivery margins for short-term trades.
Auto square-off rules you must know
| Segment | Typical auto square-off time |
|---|---|
| Equity (NSE/BSE cash) | 3:15 p.m. |
| Equity F&O | 3:25 p.m. |
| Currency | 4:45 p.m. |
| Commodity (MCX) | 25 minutes before contract close |
If you do not square off manually, the broker’s risk team will fire a market order to close the position. That can result in slippage — especially in illiquid stocks. Smart traders close their own positions a few minutes before the cut-off.
When to use MIS — and when not to
- Use MIS for clear intraday setups: breakouts, scalps, news-driven trades, or hedging an existing delivery position for the day.
- Avoid MIS if your analysis is multi-day. Forcing a delivery thesis into MIS leverage usually ends in margin pressure or panicked exits.
- Avoid MIS in stocks under additional surveillance (ASM/GSM) — brokers often disable leverage or block MIS for these names.
Costs and charges
MIS attracts the same brokerage, STT, exchange transaction charges, GST and SEBI charges as any intraday trade. STT on equity intraday is charged only on the sell side at 0.025% of turnover. Brokerage at Lemonn is a flat per-order fee, which makes MIS especially economical for small intraday positions.
Common mistakes beginners make
- Over-leveraging: Using full MIS leverage on every trade. A few bad days can wipe out months of gains.
- Ignoring the cut-off: Letting the broker auto-close at the worst price of the day.
- Confusing MIS with CNC: Placing a delivery thesis with intraday product type and watching it square off into a loss.
- Not setting a stop loss: MIS without a stop is the fastest way to learn risk management the hard way.
Frequently asked questions
Can I convert an MIS position to delivery?
Yes, most brokers allow you to convert MIS to CNC (or NRML in F&O) any time before the auto square-off, provided you have enough margin in your account.
What happens if I do not have enough funds at square-off?
The position is still closed at market price. Any resulting loss creates a debit balance you must clear, usually before the next trading day.
Does MIS attract higher brokerage?
No. Discount brokers like Lemonn charge the same flat fee for MIS and CNC equity trades.
Is short selling allowed with MIS?
Yes. You can sell first and buy back within the same day under MIS — this is the standard way of taking bearish intraday bets in cash equity.
