What is CNC in Zerodha Kite?

CNC is an abbreviation for Cash and Carry. It is an order type used for delivery-based orders. If you want to buy a stock and want to hold it for more than two days, then you need to use the CNC order type. Zerodha offers brokerage free delivery trading that means all CNC orders are free of brokerage.

It is important to note that CNC is a product code. CNC code does not restrict you from selling the stock the same day if desired. But the sell quantity cannot be more than the buy quantity. There is no penalty if you sell the shares on the same day. However, in such cases, these trades will be treated as Intraday trades, and brokerage applicable for Equity Intraday trades will get applied.

Using CNC product code, you do not get any leverage nor, your position gets auto squared off. You cannot sell using the product code CNC without holding the particular stock in your DEMAT account unless you buy and sell the same day.