Do you have a demat account with Zerodha and now you are wondering what does CNC in the app stands for? Or when to sell CNC order in Zerodha?
CNC Order refers to cash and carry, generally known as delivery trading. So, if you want to hold any share for one or more days, you have to buy that share using the CNC order type. When you place an order using the CNC order type, your order will not get auto-squared off at the end of the same trading day.
Placing a CNC order is simple and you can do that in a few steps using the steps. But when should you sell the CNC order in Zerodha?
You can hold a CNC order overnight and then sell it whenever you feel that you have made enough profits. It can be a day or two and even years.
Not just on different days but you can place a CNC order and then sell it on the same day. But will it be considered a delivery trade? The answer is no! In this case, it will be counted as an intraday trade. And you will be charged brokerage according to that.
But if you are thinking of short-selling, then you cannot do that with a CNC order. This is because short-selling requires selling the stocks before purchasing them. You cannot execute a CNC order till the time you have shares in your demat account. Therefore, your order will get rejected if you try to sell the shares that are not present in your demat account.
But what about the validity of a CNC order?
One can hold stock in CNC order type from a few days to even years. This mainly depends on the financial goals of an individual.
You can choose the validity of CNC order according to your needs. So, if you have placed a CNC order, set a limit price, and selected a day’s validity, the order remains in the exchange until the end of the trading day or till the order gets executed.
If the order has been placed using an IOC (immediate or cancel) order, it either gets executed immediately or if there are no suitable matches in the exchanges the order gets canceled. There can also be cases of partial execution in the IOC orders. Suppose you have placed 2 trades and only the price of one match, then the other one gets canceled.
So, you can sell a CNC order in Zerodha depending on your needs, profit, and financial goals. Just in case you face difficulties in implementing the order, you can contact us for further assistance.
