CNC Full Form in Share Market

What is the Full Form of CNC in The Share Market?

The CNC Full Form in Share Market is Cash N Carry. This is a straightforward way of dealing with stocks where you’re not borrowing money to buy shares. Instead, you’re using your own money to make purchases or sales with the plan of actually getting those shares into your own hands. When you pick the CNC option and buy shares, those shares are moved into your Demat account after a couple of days, usually two business days after the trading day, known as T+2 days.

How Does CNC Work in the Share Market?

CNC trading is all about paying the full price for your shares upfront, without borrowing any money from your broker. This means you need to have enough cash in your account to cover your buys. This approach is usually favored by people who want to keep their shares for a while since it’s a safer way to invest without the worry of owing money.

Differences Between CNC and Other Order Types

First off, CNC is all about delivery trading. This means you actually take ownership of the shares once everything is settled, which doesn’t happen with margin trading or MIS orders. MIS orders are meant for trades that start and end on the same day. CNC trading means you’re paying all the costs upfront, without any leverage, while margin trading lets you buy shares with money you borrow, bringing in more risk.