Zerodha kite is one of the most popular trading platforms in India. It has simple user friendly interface. Some of the terms in this platform may be a bit confusing for beginners in stock market. We will discuss about MIS order in zerodha kite in this post.
You can read more details about zerodha kite with video here - zerodha kite complete tutorial
What is MIS in zerodha
MIS or Margin intraday square off is an order type in zerodha used for intraday trading. You can use MIS order fro intraday trades in Equity, F&O and Commodity segments.
How to place MIS order
In zerodha order book, you can find two type of products. One is CNC and other is MIS. CNC or cash and carry is used for equity delivery Trades. Select MIS option for intraday order.
Uses of MIS order
We will get intraday leverage if we use MIS order. We know we will get leverage for intraday trading. In some stocks you get upto 10 times leverage even after new sebi margin rules. It varies between stocks. You will also gets leverage for F&O segment and commodity segment. Only in option buying leverage is not provided. To get this leverage in intraday equity, intraday f&o and intraday commodity trading, you should use MIS order.
Another thing is, if we buy a stock for intraday using MIS order it will auto square off at 3.20 PM. This will save us from short delivery, if we short sell a stock intraday and forget to square off. For F&O MIS orders, it will auto square off at 3.25 PM. Zerodha will charge a fee for this auto square off.
CNC order
If one dont want this leverage, he can use normal CNC order. If he buy with CNC order he dont have to worry about auto square off also because he is holding stocks with fund in his account and not taken any margin from broker. He can square off it same day or can carry forward the postion if he wants.
You can read more about CNC here - What is CNC in zerodha
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