{"id":12186,"date":"2026-05-22T13:38:20","date_gmt":"2026-05-22T13:38:20","guid":{"rendered":"https:\/\/lemonn.co.in\/blog\/glossary\/cnc-order-type\/"},"modified":"2026-05-22T13:38:20","modified_gmt":"2026-05-22T13:38:20","slug":"cnc-order-type","status":"publish","type":"glossary","link":"https:\/\/lemonn.co.in\/blog\/glossary\/cnc-order-type\/","title":{"rendered":"CNC Order Type"},"content":{"rendered":"<p>CNC, or Cash and Carry, is the product type you choose when you want to buy <a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/shares\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">shares<\/a> and actually hold them. Unlike intraday products, a CNC order is not auto-closed. The shares move to your <a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/demat-account\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">demat account<\/a> on T+1 and stay there until you decide to sell. CNC is the default for long-term investors using Indian <a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/broker\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">broker<\/a>s.<\/p>\n<div><strong>Key takeaways:<\/strong>\n<ul>\n<li>CNC is meant for delivery-based <a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/equity\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">equity<\/a> trades &#x2014; you pay the full price and receive the shares.<\/li>\n<li>There is no <a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/leverage\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">leverage<\/a>; you need 100% of the trade value in your <a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/trading-account\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">trading account<\/a>.<\/li>\n<li>Shares are credited to your demat account on T+1 (one working day after the trade).<\/li>\n<li>CNC positions have no auto square-off &#x2014; you decide when to sell.<\/li>\n<li>STT is charged on both buy and sell sides for delivery trades, unlike intraday.<\/li>\n<\/ul>\n<\/div>\n<h2 id=\"what-does-cnc-actually-mean\">What does CNC actually mean?<\/h2>\n<p>The full form of CNC &#x2014; Cash and Carry &#x2014; captures the idea perfectly. You bring the full cash and you carry the shares home. There is no <a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/margin-funding\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">margin funding<\/a>, no overnight risk to the broker, and no obligation to close the trade by the end of the day. Once the order executes, the shares belong to you.<\/p>\n<p>In an Indian broker&rsquo;s order window, CNC sits alongside MIS (intraday) and NRML (F&amp;O carry-forward). You pick CNC when your intent is to invest rather than trade.<\/p>\n<h2 id=\"how-a-cnc-trade-settles\">How a CNC trade settles<\/h2>\n<ol>\n<li><strong>Order placed:<\/strong> You buy 100 shares of Infosys at &#x20B9;1,500. The &#x20B9;1,50,000 is blocked in your <a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/trading\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">trading<\/a> account.<\/li>\n<li><strong>T-day:<\/strong> Trade is executed on the exchange. You see the position in your holdings but as an u<a class=\"glossaryLink\"  href=\"https:\/\/lemonn.co.in\/blog\/glossary\/nse\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'  tabindex='0' role='link'>nse<\/a>ttled trade.<\/li>\n<li><strong>T+1:<\/strong> Settlement happens. Shares are credited to your demat account; funds are d<a class=\"glossaryLink\"  href=\"https:\/\/lemonn.co.in\/blog\/glossary\/ebit\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'  tabindex='0' role='link'>ebit<\/a>ed.<\/li>\n<li><strong>Hold or sell:<\/strong> Once shares are in demat, you can hold indefinitely. Selling them later is also a CNC trade and reduces your holdings.<\/li>\n<\/ol>\n<h2 id=\"charges-on-a-cnc-trade\">Charges on a CNC trade<\/h2>\n<p>The real cost of a delivery trade is usually low if you trade with a discount broker, but the statutory charges add up. Typical breakup on a &#x20B9;1,00,000 CNC buy:<\/p>\n<table>\n<tr>\n<th>Charge<\/th>\n<th>Approximate rate<\/th>\n<\/tr>\n<tr>\n<td>Brokerage<\/td>\n<td>Flat &#x20B9;0&#x2013;20 per order (Lemonn charges &#x20B9;0 on <a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/equity-delivery\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">equity delivery<\/a>)<\/td>\n<\/tr>\n<tr>\n<td>STT<\/td>\n<td>0.10% of turnover (buy &amp; sell)<\/td>\n<\/tr>\n<tr>\n<td>Exchange transaction charge<\/td>\n<td>~0.00322% NSE \/ 0.00375% <a class=\"glossaryLink\"  href=\"https:\/\/lemonn.co.in\/blog\/glossary\/bse\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'  tabindex='0' role='link'>BSE<\/a><\/td>\n<\/tr>\n<tr>\n<td><a class=\"glossaryLink\"  href=\"https:\/\/lemonn.co.in\/blog\/glossary\/gst\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'  tabindex='0' role='link'>GST<\/a><\/td>\n<td>18% on brokerage + exchange charges<\/td>\n<\/tr>\n<tr>\n<td><a class=\"glossaryLink\"  href=\"https:\/\/lemonn.co.in\/blog\/glossary\/sebi\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'  tabindex='0' role='link'>SEBI<\/a> turnover fee<\/td>\n<td>&#x20B9;10 per crore<\/td>\n<\/tr>\n<tr>\n<td>Stamp duty<\/td>\n<td>0.015% on buy side only<\/td>\n<\/tr>\n<\/table>\n<h2 id=\"when-to-choose-cnc\">When to choose CNC<\/h2>\n<ul>\n<li>You want to build a long-term <a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/portfolio\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">portfolio<\/a> across blue-chips and emerging mid-caps.<\/li>\n<li>You are running a <a class=\"glossaryLink\"  href=\"https:\/\/lemonn.co.in\/blog\/glossary\/sip\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'  tabindex='0' role='link'>SIP<\/a>-like accumulation in individual <a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/stocks\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">stocks<\/a>.<\/li>\n<li>You plan to hold for more than 12 months to qualify for long-term <a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/capital-gains-tax\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">capital gains tax<\/a> treatment.<\/li>\n<li>You are buying ETFs or <a class=\"glossaryLink\"  href=\"https:\/\/lemonn.co.in\/blog\/glossary\/reit\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'  tabindex='0' role='link'>REIT<\/a>s for income.<\/li>\n<\/ul>\n<h2 id=\"cnc-vs-mis-picking-the-right-product\">CNC vs MIS &#x2014; picking the right product<\/h2>\n<table>\n<tr>\n<th><\/th>\n<th>CNC<\/th>\n<th>MIS<\/th>\n<\/tr>\n<tr>\n<td>Holding period<\/td>\n<td>Any (long-term ready)<\/td>\n<td>Same day only<\/td>\n<\/tr>\n<tr>\n<td>Margin<\/td>\n<td>100% upfront<\/td>\n<td>Reduced (leverage given)<\/td>\n<\/tr>\n<tr>\n<td>Auto square-off<\/td>\n<td>No<\/td>\n<td>Yes (~3:15 p.m.)<\/td>\n<\/tr>\n<tr>\n<td>STT<\/td>\n<td>0.10% buy + sell<\/td>\n<td>0.025% sell only<\/td>\n<\/tr>\n<tr>\n<td>Best for<\/td>\n<td>Investors<\/td>\n<td>Active intraday traders<\/td>\n<\/tr>\n<\/table>\n<h2 id=\"things-investors-often-miss\">Things investors often miss<\/h2>\n<p><a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/short-selling\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">Short selling<\/a> is not allowed in CNC because you must own the shares before selling. A CNC sell of a stock you do not hold will be rejected. If your shares are still in <a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/t1-settlement\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">T+1 settlement<\/a>, you can usually sell them the same day under most brokers, but this counts as a BTST trade and has its own risks.<\/p>\n<h2 id=\"frequently-asked-questions\">Frequently asked questions<\/h2>\n<div>\n<h3 id=\"can-i-sell-cnc-shares-the-same-day-i-buy-them\">Can I sell CNC shares the same day I buy them?<\/h3>\n<p>Yes, but it becomes a BTST (buy today, sell tomorrow) style trade and not pure intraday. The shares are technically not in your demat yet, so brokers warn about short-delivery auction risk.<\/p>\n<h3 id=\"is-there-any-leverage-on-cnc\">Is there any leverage on CNC?<\/h3>\n<p>No. SEBI rules require full upfront payment for delivery trades since the September 2021 framework.<\/p>\n<h3 id=\"will-my-cnc-position-get-auto-closed\">Will my CNC position get auto-closed?<\/h3>\n<p>No. CNC has no end-of-day square-off. You hold the shares until you decide to sell.<\/p>\n<h3 id=\"do-i-need-a-demat-account-for-cnc\">Do I need a demat account for CNC?<\/h3>\n<p>Yes. CNC shares are settled into your demat account. A trading account alone is not enough.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>CNC, or Cash and Carry, is the product type you choose when you want to buy shares and actually hold them. Unlike intraday products, a CNC order is not auto-closed. The shares move to your demat account on T+1 and stay there until you decide to sell. CNC is the default for long-term investors using [&#x2026;]<\/p>\n","protected":false},"author":3,"featured_media":0,"menu_order":0,"template":"","meta":{"_uag_custom_page_level_css":"","footnotes":""},"class_list":["post-12186","glossary","type-glossary","status-publish","hentry"],"blocksy_meta":[],"uagb_featured_image_src":{"full":false,"thumbnail":false,"medium":false,"medium_large":false,"large":false,"1536x1536":false,"2048x2048":false,"web-stories-poster-portrait":false,"web-stories-publisher-logo":false,"web-stories-thumbnail":false},"uagb_author_info":{"display_name":"Team Lemonn","author_link":"https:\/\/lemonn.co.in\/blog\/author\/ashu\/"},"uagb_comment_info":0,"uagb_excerpt":"CNC, or Cash and Carry, is the product type you choose when you want to buy shares and actually hold them. Unlike intraday products, a CNC order is not auto-closed. The shares move to your demat account on T+1 and stay there until you decide to sell. CNC is the default for long-term investors using&hellip;","_links":{"self":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/glossary\/12186","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/glossary"}],"about":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/types\/glossary"}],"author":[{"embeddable":true,"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/users\/3"}],"version-history":[{"count":0,"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/glossary\/12186\/revisions"}],"wp:attachment":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/media?parent=12186"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}