Suppose I place a CNC order of ABC company on the listing day as I am not able to place MIS order and I earn a profit! Can I sell all the shares on the same day? How much % I will be charged if I do this? If this can be done then why are we not allowed to place MIS orders?
MIS means use of leverage is there i.e. you can buy shares worth more than your account value. You can buy and sell CNC shares on same day except Trade-to-Trade category stocks.
When u place buy order exchanges dont know if ur placing MIS or CNC …
If the price matches with seller the order is executed.
If u want to carry those order over night u have to place CNC. Even if u place the CNC and closed the postion on the same day it will be considered as MIS order by broker.
MIS leverage is given at broker level based on the price moment in the past. If price movement is very little In past so high leverage is given.if price movement is high they give less leverage.
On the day of listing day of the share , broker don’t have previous momentum data so they don’t provide leverage usually.
Usually on the listing day price moves very violently up and down.
This would be reason for them not providing MIS orders on listing day.