The CNC Full Form in Share Market is Cash N Carry. It’s a simple method to deal with stocks, where you don’t borrow cash to purchase shares. Instead the shares are purchased using personal funds to purchase or sell shares with the goal of receiving the shares in your own possession. If you select your CNC option and then purchase shares, the shares will be placed into your Demat account within a few days, typically two business days following the day of trading, also known in the T+2 day.

How Does CNC Work in the Share Market?

CNC trading focuses on paying the full cost for your shares in advance and without borrowing money with your broker. This means that you must have enough money on your bank account in order to pay for the cost of your purchases. This strategy is generally preferred by those who wish to keep their shares some time since it’s a more secure option to invest with no fear of being in debt.

Differences Between CNC and Other Order Types

In the beginning, CNC is about trading in delivery. It means you will own the shares after all is settled. This isn’t the case when you use margin trading or mis-orders. The MIS orders are intended to trades that begin and finish one day. CNC trading is when you pay all costs upfront with no leverage. Likewise, margin trading lets you purchase shares using money you borrow and carries greater risk.