Zerodha is a popular online trading platform in India that allows investors to buy and sell various financial instruments such as stocks, mutual funds, commodities, and currencies. If you have recently opened an account with Zerodha or are planning to do so, you might be wondering how to convert position in Zerodha. In this article, we will explain what position means in trading and how you can convert your position in Zerodha.

What is a position in trading?

In trading, a position refers to the amount of a particular security or financial instrument that an investor holds in their portfolio. A position can be long or short, depending on whether the investor has bought or sold the security. If an investor has purchased a security, they have a long position in that security, and if they have sold the security, they have a short position in that security

Converting position in Zerodha

To convert a position in Zerodha, you need to understand the concept of product types. Zerodha offers three product types: CNC (Cash and Carry), MIS (Margin Intraday Square-off), and NRML (Normal). Each product type has its unique features and benefits. What is Cnc in Zerodha? CNC in Zerodha refers to "Cash and Carry," a type of order where stocks bought can be held for an unlimited period without any leverage.

CNC (Cash and Carry)

CNC is a product type that is used for delivery-based trading. If you want to buy stocks and hold them for the long-term cnc in Zerodha, you can use the CNC product type. cnc in zerodha meaning, when you buy a stock using CNC, the stock is credited to your demat account, and you can hold it for as long as you want. If you want to convert your CNC position, you can sell the stock at any time.

MIS (Margin Intraday Square-off)

MIS is a product type that is used for intraday trading. If you want to buy and sell stocks within the same trading day, you can use the MIS product type. When you buy a stock using MIS, you need to pay only a fraction of the total value of the stock as a margin. If you want to convert your MIS position, cnc and mis in zerodha you can either sell the stock before the end of the trading day or convert it to a CNC position by paying the full value of the stock.

NRML (Normal)

NRML is a product type that is used for overnight trading. If you want to buy and hold stocks for more than one day, you can use the NRML product type. When you buy a stock using NRML, you need to pay the full value of the stock as a margin. If you want to convert your NRML position, you can sell the stock at any time.

How to Convert position in Zerodha

To convert your position in Zerodha, you need to follow these steps:

• Go to the "Positions" tab.

• Select the stock that you want to convert.

• Click on the "Convert" button.

• Select the product type that you want to convert to (CNC, MIS, or NRML).

• Enter the quantity of shares that you want to convert.

• Click on the "Convert" button.

• Once you have converted your position, you can see the updated position details in the "Positions" tab.

Conclusion

Converting positions in Zerodha is a simple process that can be done with just a few clicks. However, before you convert your position, make sure that you understand the product types and their features. Depending on your trading strategy and investment goals, you can choose the product type that suits your needs.

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