Zerodha Product Codes Explained - CNC, MIS, SL & More

With over 3 million clients in India, Zerodha is a pioneering name in the field of stockbroking. Being one of the top brokers in India, Zerodha is known to have brought the concept of discount broking in India and maintained its position for many years. The best discount broker in India offers a number of products & services that are known to set a benchmark in the domain. For example, Zerodha’s Kite trading platform has no match in terms of user-friendly navigation and trading experience.

Now when it comes to using Kite trading platform, there are various technical terms traders and investors come across. In order to ensure a smoother and feasible trade, it is necessary for them to have proper knowledge of them. So, in this post, we will explain various Zerodha product codes like CNC, MIS, SL, and others. If you have no idea about what they are and how you can use them at various states of stock trading, you can get the best answers here. Whether you want to do intraday trading in Zerodha or regular trading, having proper knowledge of Zerodha product codes is always a big plus.

What are Zerodha product codes?

Zerodha product codes actually refer to various types of codes that are known to trigger different actions. For instance CNC, MIS, QTY, PRICE, SL, and others. Having detailed knowledge of what these quotes is extremely necessary if you wish to place your purchase/promote order properly. So, for your understanding, we have highlighted some of the majorly used Zerodha product codes below:

· CNC: Money N Carry

· MIS: Margin Intraday Sq.-off

· MKT: Market Order

· LMT: Restrict Order

· SL: Cease Loss

· SL-M: Cease loss market

· Set off Level

· Disclosed amount

CNC: It refers to Cash n carry and utilized in delivery based equity. There is no leverage given in CNC. However, there is also no auto square off at the summing of the trading session.

MIS in Zerodha: Being one of the top 10 stock brokers in India, Zerodha offers a wide range of trading and investment opportunities to traders and investors. MIS means Margin Intraday square off. It is used for Intraday trading with leverage. All MIS position is auto squared off at the end of the day session.

Market order (MKT): When it comes to buying a share on the existing market worth, it is suggested to place a market order. For example, if the market worth (present buying and selling worth) of an inventory is Rs 100 and you might be ready to buy the share on the undistinguishable value or the market worth, then you possibly can place a market order. Right here, the order is executed instantaneously on the market worth.

Restrict order (LMT): A restrict order refers to buying or promoting a share at a restrict worth. If you want to purchase/promote a share at a specific value, then you should place a restrict order. For example, if the present market worth of a stock is Rs 300, nonetheless you should buy it at Rs 290. Then it’s better to place a restrict order. When the market worth of ABC reduces to Rs 290, then the order is executed.

Cease-loss (SL): STOP LOSS is meant to control the losses when the worth of an inventory starts falling. For example, if you’re coming into inventory at Rs 300. However, the worth of that inventory starts downsizing and you expect to make losses. In such a situation, you can place an order to confine the loss to Rs 290. It stipulates that you just need to carry out a commerce however given that the desired worth is achieved. Cease-loss is a great device to control losses.

Cease loss market (SL-M): That is used to place a cease loss at market worth. In this case, you must need to specify the set off worth. When the set off worth is attained, then the cease loss order is dispersed to the alternative at market worth.

Set off Worth: That is used for cease loss orders. It’s the worth at which you need ‘stop-loss’ to be activated.

Disclosed amount: This allows traders to disclose only part of the exact amount of the shares that one bought or offered. This revealed amount must be higher than 10% of the order amount. For example, let’s assume that you got 1000 shares. You possibly can unveil only 400 shares. The revealed amount can be established in the marketplace display window.

These are the most commonly used Zerodha product codes one should be aware of while carrying out transactions. Having proper understanding of all of them gives traders and investors a helping hand in decoding technical terms and making right gains at the right time.

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FAQs

Q. What does 'free cash' refer to?

Ans - Free cash refers to the amount in one’s trading account using which he can place new trades.

Q. What is Normal (NRML)?

Ans - Normal (NRML) is utilized for overnight trading of futures and options. If the client does not expect any excess leverage, he can use the product type NRML, and he doesn’t need to worry about Automatic Square-offs. NRML product code is also used for Delivery based trading of Currency.

Q. What is a Cover Order?

Ans - Cover Order is actually a two-side order where you place to buy/sell order along with matching stop loss order.