{"id":87,"date":"2021-05-27T20:00:10","date_gmt":"2021-05-27T20:00:10","guid":{"rendered":"https:\/\/www.learnstockmarket.in\/brokers\/?p=87"},"modified":"2021-05-27T20:15:12","modified_gmt":"2021-05-27T20:15:12","slug":"mis-order-meaning-example","status":"publish","type":"post","link":"https:\/\/www.learnstockmarket.in\/brokers\/zerodha\/mis-order-meaning-example\/","title":{"rendered":"MIS Order in Zerodha: Meaning with example"},"content":{"rendered":"\n

If you are new to Zerodha and looking to buy your first few shares, you will find the option \u2018MIS<\/strong>\u2019 and \u2018CNC\u2019.<\/p>\n\n\n\n

This is how it will look on your Zerodha Kite Mobile App:<\/p>\n\n\n\n

\"MIS<\/figure><\/div>\n\n\n\n

Below the quantity and price, you will find \u2018MIS\u2019.<\/p>\n\n\n\n

  • MIS Full Form<\/strong>: Margin Intraday Square-off<\/li>
  • MIS Meaning<\/strong>: MIS is an intraday order, which means you will have to close the order on the same day.<\/li>
  • MIS Example<\/strong>: You buy shares of Reliance Industries in the morning by selecting the \u2018MIS\u2019 option. You will have to sell the shares before 3:20PM in the evening. If you don\u2019t sell, Zerodha will automatically close your order at 3:20PM \u2013 i.e. 10 minutes before the market closes.<\/li><\/ul>\n\n\n\n

    The reason why a lot of people prefer \u2018Intraday\u2019 trading is because of leverage.<\/p>\n\n\n\n

    In very simple words, Leverage means using more money than you have.<\/p>\n\n\n\n

    For example, the current share price of Reliance Industries \u2013 at the time of writing this article \u2013 is \u20b9 1976.<\/p>\n\n\n\n

    If you deposit \u20b9 10,000 in your Zerodha account, you can only buy 5 shares.<\/p>\n\n\n\n

    However, with the \u2018MIS\u2019 option, the broker (Zerodha) gives you more money to play with. You can buy 46 shares of Reliance, as long as you sell it before the end of the same day.<\/p>\n\n\n\n

    That\u2019s right. You can buy shares worth \u20b9 91,000 by just depositing \u20b9 10,000 in your account!<\/p>\n\n\n\n

    Check the screenshot below:<\/p>\n\n\n\n

    \"MIS<\/figure><\/div>\n\n\n\n

    This ability to take leverage using the \u2018MIS\u2019 option has both advantages and disadvantages.<\/p>\n\n\n\n

    If the share price of Reliance goes up by 5%, you will gain \u20b9 4500 in a single day. That\u2019s 45% returns on a capital of \u20b9 10,000.<\/p>\n\n\n\n

    However, if Reliance falls by 5%, you will lose \u20b9 4500 in a single day. That\u2019s 45% of your \u20b9 10,000 capital lost in a single day.<\/p>\n\n\n\n

    This is what makes leverage extremely exciting as well as extremely risky.<\/p>\n\n\n\n

    Experienced traders, who know how to manage their risk, use leverage to their advantage. On the other hand, those who are new to the market, but think they can earn quick money – end up losing everything.<\/p>\n\n\n\n

    Advice: Unless you know exactly what you are doing, avoid intraday trading. Avoid using leverage. Avoid the derivative market (Futures and Options).<\/p>\n\n\n\n

    In the first few years, always buy shares of good companies for longer periods of time. Also, use the \u2018Coin\u2019 platform to invest money in mutual funds or index funds.<\/p>\n\n\n\n

    Only after you learn technical analysis, gain experience in the market for a few years, get comfortable with its volatility (ups and downs) \u2013 should you even think of using leverage or trading intraday.<\/p>\n\n\n\n

    If you have any questions, please ask in the comments section below.<\/p>\n","protected":false},"excerpt":{"rendered":"

    If you are new to Zerodha and looking to buy your first few shares, you will find the option \u2018MIS\u2019 and \u2018CNC\u2019. This is how it will look on your Zerodha Kite Mobile App: Below the quantity and price, you will find \u2018MIS\u2019. MIS Full Form: Margin Intraday Square-off MIS Meaning: MIS is an intraday […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"categories":[1],"tags":[],"class_list":["post-87","post","type-post","status-publish","format-standard","hentry","category-zerodha","et-doesnt-have-format-content","et_post_format-et-post-format-standard"],"_links":{"self":[{"href":"https:\/\/www.learnstockmarket.in\/brokers\/wp-json\/wp\/v2\/posts\/87","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.learnstockmarket.in\/brokers\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.learnstockmarket.in\/brokers\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.learnstockmarket.in\/brokers\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.learnstockmarket.in\/brokers\/wp-json\/wp\/v2\/comments?post=87"}],"version-history":[{"count":8,"href":"https:\/\/www.learnstockmarket.in\/brokers\/wp-json\/wp\/v2\/posts\/87\/revisions"}],"predecessor-version":[{"id":100,"href":"https:\/\/www.learnstockmarket.in\/brokers\/wp-json\/wp\/v2\/posts\/87\/revisions\/100"}],"wp:attachment":[{"href":"https:\/\/www.learnstockmarket.in\/brokers\/wp-json\/wp\/v2\/media?parent=87"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.learnstockmarket.in\/brokers\/wp-json\/wp\/v2\/categories?post=87"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.learnstockmarket.in\/brokers\/wp-json\/wp\/v2\/tags?post=87"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}