Usually People start trading with limited knowledge of technical options. This issue affects an individual in many ways. They don’t know how to use some option on their trading platform or app from which they are trading. One of them is the Convert Position feature. Most people are unaware of What is Convert position in Zerodha?
Table of Contents
Introduction
Intraday Trading is quite popular among traders. Whenever people join the stock market, they mostly try the option of Intraday trading. However, They don’t know how to protect themselves from intraday loss. The Option of Convert Position is most suitable for them.
Let’s now talk about what is Convert Position in Zerodha? and How can you use it? so you can save yourself from regular losses of intraday.
What is Convert position in Zerodha?
The Convert Position option in Zerodha is mainly to convert your trade from MIS (Margin Intraday Square Off)to CNC (Cash and Carry) and from CNC to MIS. You can find this option in your Position tab of Kite platform or mobile app. You can check out the below picture for more clarity.
Usages of Convert Position Option
These are some major usages of Covert Position option:
- If you go wrong in a trade you can convert the trade of MIS to CNC and save yourself from losses. Whatever will be your losses you can carry forward them if you convert your position to CNC.
- If you had bought shares in CNC & stock had given your good return within the same day. You can convert the CNC to MIS and execute the sell order with no extra cost.
- If you bought shares in CNC & some bad news came about the stock at the same time. You can convert the CNC to MIS and execute the sell order with no extra cost.
- If you bought shares in MIS & some good news came about the stock at the same time. You can convert the MIS to CNC and Keep the stock for a long term for further gains.
Example of Convert Position Feature
If You actually bought 20 stocks using MIS of Britannia in the early hours with the intention of selling them after 2-3 hours on the same day, but you eventually decide to hold the stocks until next week due to loss or some good news.
In this Scenario you need to go to the position section of Kite web or app. In-front of Britannia there will be three dots. You can click on them. As shown in the above picture there will be a menu pop up in which you can find a covert option.
you can just click on convert and the order will be changed to CNC. Similarly you can convert your CNC order to MIS as well.
Note:
If you do not convert the order from MIS to CNC before 3:20 p.m., the brokerage will exit your position eventually. You aren’t allowed to carry MIS orders the next day. Zerodha will also charge INR 50/- Penalty per order.
Charges for Convert Position Zerodha Feature
There are no extra charges to convert your position to another trade type. Whatever your final trade type remains(MIS or CNC) at the end of the day will decide your charges according to your plan with Zerodha.
Conclusion
Zerodha is developing itself in a very big way. They make products easier for the customer as much as they can do. This convert position option is one of key for small traders to cover their losses.
We hope we are able to answer your question: what is convert position in Zerodha? Let us know your views about how to convert position to holdings in zerodha in the comment section.
Other Interesting blogs related to What is Convert Position in Zerodha?
How to Apply for Buyback of Shares Online
FAQ About How to Convert Position in Zerodha?
What are the charges to Covert Position in trading?
There are no extra charges to covert position in trading.
What is mis in zerodha?
MIS means Margin Intraday Square Off.
What is CNC in Zerodha?
CNC means Cash and Carry in Zerodha.
Can we also covert CNC to MIS in Covert position option?
Yes you can also convert CNC to MIS in Covert position option.
What happen if i don't close your MIS position at the end of the day?
The brokerage will Square Off your position and also charge you penalty for not closing the position.
