Most brokers give you additional leverage if you were to denote that particular trade as an intraday one. So if you have 1lk in your account, based on which stock you are trading, you can buy/sell upto say 20lks worth of stocks.
Every broker follows a different terminology, MIS is something used by brokers who use Thomson Reuters backend.
MIS or Margin intraday square off. Once you place an order with this type, the broker knows that you intend to trade only for intraday, and hence gives leverage. It is given as a value add, and intraday traders typically look forward to leverage to earn more.
This leverage is typically given only for intraday, and there is no cost of borrowing of this leverage. This is like I said a value add.
A discount broker who charges a flat fee per trade doesn’t earn by this additional leverage. A traditional broker who charges a % brokerage, will now earn a % on 20lks instead of 1lk (in example above). So his earnings go up 20 times if you take 20 times leverage.
Typically this leverage is preset for stocks. The more volatile the stock, the lesser the leverage. At Zerodha it ranges from 3 times to 20 times.
No, as I said earlier, you don’t have to pay anything extra for using this additional money.