MIS in trading stands for Margin Intraday Square-off. It is a type of order used for intraday trading where traders buy and sell stocks within the same day.
When you place an MIS order, the position must be closed before the market closes. If you forget to close it, the broker automatically squares off the position.
Suppose you buy a stock at ₹100 using MIS order.
Later in the day the price becomes ₹103 and you sell it.
Your profit = ₹3 per share.
But if you do not sell the stock before market closing, the broker will automatically close the trade.
| Feature | MIS | CNC |
|---|---|---|
| Trading Type | Intraday | Delivery |
| Holding Period | Same day only | Long term |
| Leverage | Available | Usually not available |
| Risk Level | High | Lower |
MIS trading is mainly used by intraday traders who want to take advantage of short-term price movements in the market. However, beginners should be careful when using MIS because leverage can increase both profits and losses.
If you are new to trading, it is better to start with delivery-based trading and learn market basics before using intraday margin trading.