What Is A CNC Order In Stock Markets?

The full form of CNC is Cash N Carry, and the CNC is used in the Equity Segment of BSE & NSE. It is used for buying or selling shares for delivery. What is delivery? When you buy a stock and hold the stock, it is called delivery. For example, I buy stocks today, and I may sell them after two days or ten days, or I can even hold the stock for a year and sell it later on. The point to note here is there is no time limit. This is known as the delivery process.

Now, where do the stocks/shares we buy get saved? The shares purchased using the CNC option would be transferred to your Demat account after T + 2 days; that is, t-day is the day you buy the stocks plus two more days. Now, what is the Demat account? Demat Account is short for dematerialisation account, and this account makes the process of holding investments like shares, bonds, government securities, Mutual Funds, Insurance and ETFs easier; a Demat Account is a bit like a bank account. It’s an electronic account to save your stocks.

Key Points:

• The CNC is used in the Equity Segment of BSE & NSE which is used for buying or selling shares for delivery.

• Upon successful completion of the trade, After T+ 2 days it will reflect in the Demat account and you can choose to sell it.

• Stocks can be bought only based on your available funds.

• The exposure limit is not applicable for CNC orders.

• Stocks which are bought can be converted from intraday to CNC orders.

https://youtu.be/uv34a83V5KE