What Is the Difference Between Long Term / Intraday Order Types?
Find the difference between long-term and intraday order types here on the Investmint app.
Introduction
After you click on the ‘Trade’ button on a news item, you get two options-
- Longterm
- Intraday
- Long-term: The long-term order type allows you to buy the stock in CNC (Cash And Carry), which is an order type that allows you to hold the stock for the long term (more than 1 day). You cannot place a stop loss or target order here; you will also need the entire amount to buy your desired number of shares.
- Intraday: In the Intraday order type, your order gets executed in the ‘MIS’ (Margin Intraday Squareoff) option, which lets you buy/sell a stock only for one trading day. Unlike the ‘Longterm’ order type, you can add a stop loss and target order in an intraday order. Another benefit that you get in intraday order is the additional leverage. Some stocks offer a 5x margin, meaning you can buy 10 shares of Rs 100 each, even if you have Rs 200 in your trading account.
Note: Your broker will auto-square off your position before 3:30 p.m. if you do not manually exit them before the market closes.
In a scenario where your order is squared off automatically by the broker, you will still see the position on the Investmint app. Make sure to delete the trade manually from the dashboard.
