{"id":12219,"date":"2026-05-22T13:38:56","date_gmt":"2026-05-22T13:38:56","guid":{"rendered":"https:\/\/lemonn.co.in\/blog\/glossary\/mis-order-type\/"},"modified":"2026-05-22T13:38:56","modified_gmt":"2026-05-22T13:38:56","slug":"mis-order-type","status":"publish","type":"glossary","link":"https:\/\/lemonn.co.in\/blog\/glossary\/mis-order-type\/","title":{"rendered":"MIS Order Type"},"content":{"rendered":"<p>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 <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> offers higher <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> in exchange for one condition &#x2014; the position must be closed before the market shuts. If you forget, the broker&#x2019;s risk system squares it off automatically.<\/p>\n<div><strong>Key takeaways:<\/strong>\n<ul>\n<li>MIS is an intraday-only product available across <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>, F&amp;O, currency and <a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/commodity\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">commodity<\/a> segments.<\/li>\n<li>Brokers offer leverage (often 5x or more) on MIS orders so you can take larger positions with the same capital.<\/li>\n<li>Any open MIS position is auto-squared-off at a fixed cut-off time, usually 3:15&#x2013;3:20 p.m. for cash equity.<\/li>\n<li>Profits and losses settle the same day; you cannot carry MIS positions to the next day.<\/li>\n<li>MIS is meant for active traders, not investors looking for delivery.<\/li>\n<\/ul>\n<\/div>\n<h2 id=\"what-mis-means-in-your-order-window\">What MIS means in your order window<\/h2>\n<p>When you place a buy or sell order on Lemonn or any other Indian broker, you have to pick a &ldquo;product type&rdquo;. The three you will see most often are CNC (delivery), NRML (carry-forward F&amp;O) and MIS (intraday). Choosing MIS tells the broker two things: first, you are not interested in taking delivery of the <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>; second, you accept that the position will be closed before the close of <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> hours.<\/p>\n<p>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 &#x2014; and therefore higher effective leverage.<\/p>\n<h2 id=\"how-leverage-works-under-mis\">How leverage works under MIS<\/h2>\n<p>Suppose Reliance is trading at &#x20B9;2,500 and you have &#x20B9;25,000 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>. 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 &#x2014; five times the exposure for the same capital.<\/p>\n<p>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.<\/p>\n<h2 id=\"auto-square-off-rules-you-must-know\">Auto square-off rules you must know<\/h2>\n<table>\n<tr>\n<th>Segment<\/th>\n<th>Typical auto square-off time<\/th>\n<\/tr>\n<tr>\n<td>Equity (<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>\/<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> cash)<\/td>\n<td>3:15 p.m.<\/td>\n<\/tr>\n<tr>\n<td>Equity F&amp;O<\/td>\n<td>3:25 p.m.<\/td>\n<\/tr>\n<tr>\n<td>Currency<\/td>\n<td>4:45 p.m.<\/td>\n<\/tr>\n<tr>\n<td>Commodity (MCX)<\/td>\n<td>25 minutes before contract close<\/td>\n<\/tr>\n<\/table>\n<p>If you do not <a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/square-off\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">square off<\/a> manually, the broker&#x2019;s risk team will fire a <a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/market-order\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">market order<\/a> to close the position. That can result in <a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/slippage\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">slippage<\/a> &#x2014; especially in illiquid <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>. Smart traders close their own positions a few minutes before the cut-off.<\/p>\n<h2 id=\"when-to-use-mis-and-when-not-to\">When to use MIS &#x2014; and when not to<\/h2>\n<ul>\n<li><strong>Use MIS<\/strong> for clear intraday setups: breakouts, scalps, news-driven trades, or <a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/hedging\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">hedging<\/a> an existing delivery position for the day.<\/li>\n<li><strong>Avoid MIS<\/strong> if your analysis is multi-day. Forcing a delivery thesis into MIS leverage usually ends in margin pressure or panicked exits.<\/li>\n<li><strong>Avoid MIS<\/strong> in stocks under additional surveillance (ASM\/GSM) &#x2014; brokers often disable leverage or block MIS for these names.<\/li>\n<\/ul>\n<h2 id=\"costs-and-charges\">Costs and charges<\/h2>\n<p>MIS attracts the same brokerage, STT, exchange transaction charges, <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> and <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> 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.<\/p>\n<h2 id=\"common-mistakes-beginners-make\">Common mistakes beginners make<\/h2>\n<ol>\n<li><strong>Over-leveraging:<\/strong> Using full MIS leverage on every trade. A few bad days can wipe out months of gains.<\/li>\n<li><strong>Ignoring the cut-off:<\/strong> Letting the broker auto-close at the worst price of the day.<\/li>\n<li><strong>Confusing MIS with CNC:<\/strong> Placing a delivery thesis with intraday product type and watching it square off into a loss.<\/li>\n<li><strong>Not setting a stop loss:<\/strong> MIS without a stop is the fastest way to learn <a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/risk-management\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">risk management<\/a> the hard way.<\/li>\n<\/ol>\n<h2 id=\"frequently-asked-questions\">Frequently asked questions<\/h2>\n<div>\n<h3 id=\"can-i-convert-an-mis-position-to-delivery\">Can I convert an MIS position to delivery?<\/h3>\n<p>Yes, most brokers allow you to convert MIS to CNC (or NRML in F&amp;O) any time before the auto square-off, provided you have enough margin in your account.<\/p>\n<h3 id=\"what-happens-if-i-do-not-have-enough-funds-at-square-off\">What happens if I do not have enough funds at square-off?<\/h3>\n<p>The position is still closed at market price. Any resulting loss creates a 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> balance you must clear, usually before the next trading day.<\/p>\n<h3 id=\"does-mis-attract-higher-brokerage\">Does MIS attract higher brokerage?<\/h3>\n<p>No. Discount brokers like Lemonn charge the same flat fee for MIS and CNC equity trades.<\/p>\n<h3 id=\"is-short-selling-allowed-with-mis\">Is <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> allowed with MIS?<\/h3>\n<p>Yes. You can sell first and buy back within the same day under MIS &#x2014; this is the standard way of taking <a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/bearish\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">bearish<\/a> intraday bets in cash equity.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>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 &#x2014; the position must be closed before the market shuts. If you forget, the broker&#x2019;s risk system squares it off automatically. Key [&#x2026;]<\/p>\n","protected":false},"author":3,"featured_media":0,"menu_order":0,"template":"","meta":{"_uag_custom_page_level_css":"","footnotes":""},"class_list":["post-12219","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":"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 &#x2014; the position must be closed before the market shuts. If you forget, the broker&#x2019;s risk system squares it off automatically. Key&hellip;","_links":{"self":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/glossary\/12219","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\/12219\/revisions"}],"wp:attachment":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/media?parent=12219"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}