What Is MIS vs NRML – The Ultimate Guide

1. What Is MIS vs NRML

2. What Is MIS • MIS, or Margin Intraday Square-off, is used for intraday trading—where all positions must be squared off before the market closes on the same day. • When you select MIS while placing an order, the broker provides extra leverage (margin benefit), allowing you to take larger positions with limited capital. • For example, if you have ₹10,000 in your trading account, your broker might allow you to trade up to ₹50,000 worth of stocks using MIS, depending on leverage limits and volatility.

3. What Is NRML (Normal)? • NRML, short for Normal, is used for positional trades that can be carried forward beyond a single trading day. This order type doesn’t force you to exit before market close, allowing you to hold equity derivatives, futures, or options overnight. • For instance, if you buy NIFTY futures using NRML on Monday, you can carry that position for several days until expiry, provided you have the required margin. KEY CHARACTERISTICS OF NRML ORDERS USED FOR CARRY-FORWARD OR POSITIONAL TRADES. NO AUTOMATIC SQUARE-OFF; TRADERS DECIDE WHEN TO EXIT. REQUIRES FULL MARGIN, AS NO EXTRA INTRADAY LEVERAGE IS PROVIDED. BEST SUITED FOR SWING TRADERS, POSITIONAL TRADERS, AND STRATEGY DEVELOPERS WHO PREFER LONGER HOLDING PERIODS.

4. Conclusion • Understanding MIS vs NRML is crucial to optimising your trading capital and aligning your strategy with your goals. While MIS is designed for short-term, high-leverage trades, NRML is ideal for long-term, steady positions. With Bull8 Algo, you don’t have to choose between manual and automated trading. You can configure or select algorithms that use MIS for quick intraday profits or NRML for positional trend capture—all while maintaining complete control and transparency.

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