CNC Full Form in The Share Market

In the share market, CNC stands for Cash N Carry. It’s a simple and straightforward method of buying and selling stocks where you use your own money, rather than borrowing funds. When you opt for CNC, you’re essentially purchasing shares with the intention of owning them outright. After the purchase, the shares are transferred to your Demat account within two business days, a process referred to as T+2 settlement.

How CNC Works in the Share Market

With CNC trading, you’re paying the full price for the shares at the time of purchase, without relying on any borrowed funds from your broker. This means you need to have enough cash in your account to cover the transaction. This method is particularly appealing to long-term investors who plan to hold onto their shares for an extended period. It’s a low-risk strategy since there’s no borrowed money involved, so you don’t have to worry about paying back any loans.

CNC vs. Other Trading Types

CNC is focused on delivery trading, where you take full ownership of the shares once the trade settles. This is different from margin trading or MIS (Margin Intraday Square-off) orders. With MIS, trades are completed within the same day, and no shares are actually delivered to your account. Margin trading allows you to borrow money to buy shares, increasing your risk but also offering the potential for higher returns. CNC, on the other hand, requires you to pay the entire amount upfront, making it a safer and more conservative approach to trading.