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Delivery trading refers to buying shares with the intention of holding them beyond the trading day. Usually, the purchased shares are settled and credited to the investor’s demat account. Currently, a “T+1 rolling” settlement cycle is followed (with T+0 settlement also available for some segments).
If we talk about “delivery trading vs intraday”, unlike an intraday position, delivery holdings can be retained for a longer period. The investor may later sell the shares through the trading account, with the securities being debited from the demat account.
CNC (Cash and Carry) and MIS (Margin Intraday Square-off) are product types offered by many Indian stockbrokers. They determine how a stock trade is treated, particularly whether the position is intended for delivery or intraday trading.
| Basis | CNC | MIS |
| Meaning | Cash and Carry | Margin Intraday Square-off |
| Purpose | Delivery-based trading | Intraday trading |
| Holding period | Shares can be held beyond the trading day | Position is intended to be closed on the same trading day |
| Leverage | Not available | Available |
| Demat Account | Shares bought for delivery are “credited” to the demat account after settlement. | Intraday position is generally squared off without the delivery of shares. |
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