What is NRML product type in relation to equity?

I generally use CNC (delivery) and MIS (intraday). What are NRML and CO product types with relation to equity shares (not FO)? Please explain with example.


CNC orders applicable only for equities in which if you want to take delivery of the shares to your demat account. This won't work on orders on futures and options. 

NRML orders applicable only for buying and holding futures and options positions not for equities. You can't use NRML orders for taking delivery of equites. 

Check this post on zerodha blog and in comments section, Nithin replied about this to Shailendra's question. 


NRML is similar to CNC buy while CNC is applicable for Equities, NRML is applicable for FNOs. While MIS orders get auto-squared at 3:20 PM, one can carry both CNC and NRML products overnight. Due to the leverage available for NRML is less compared to MIS.

CO - Covered Orders are orders where SL orders are entered at the same time as position is opened. Covered orders allow only Market Orders hence position is immediately opened. Since SL is also entered at the same time, additional leverage is available.

Check out following links on Z-Connect


NRML and CNC are same except NRML is used in conjunction with F&O and CNC is used with Equities.

NRML allows you to short positions, i.e. Sell without having them. But CNC allows you to sell only if you have those equity shares in your demat account.

So you cannot use NRML with Equities or you will get error.

Cover Orders can be used in Equities. This is similar to MIS but with high leverage except it automatically creates a Stop Loss order (which cannot be canceled by you). You can either use MIS or CO as per your wish and stop loss setting.