Knowledge Base

What is Position Conversion in trading?

Position conversion is defined as an act of converting trades from their original product type and intent. For instance, if intraday trades are converted to positional carry forward trades, this shall be an act of position conversion and so on.
While trading with SAMCO, to assist the clients for a seamless trading experiences, the orders entered are divided into 3 types of product. They are:

1. MIS orders (For Intraday)
2. CNC orders (For Equity Delivery trades)
3. NRML order (For Carry Forward trades in Futures and Options)

If a client wants to only trade intraday, he can do so by entering an MIS order. Thus, the client can get extra leverage for such trade. Also he need not worry about squaring off the position since it will get auto squared off before the market closes. Similarly, one can use CNC and NRML order for non intraday trades.
Trades in MIS would be considered as Intraday positions and CNC/NRML as carry forward trades which would be squared off as and when required and not necessarily the same day before close of market hours.
However, there can be a scenario where a trader had initiated the position in intraday and wants to convert to carry forward or vice versa. Such change of position is known as Position Conversion.
Please note that position can be converted only if the required margin is available. Also Cover Orders and Bracket Orders are strictly intraday orders and cannot be converted.

Original Product Type	Converted Product Type	Meaning	Possible in case of
MIS	NRML	Intraday Orders are going to be converted into positional orders. They will not be squared off by RMS systems and will be carried forward	Equity Derivatives – NSE-F&O, Currency Derivatives – NSE-CDS and Commodity Derivatives Segments – MCX. Possible in BSE-EQ and NSE-EQ if CashPlus Product is activated.
NRML	MIS	Positional Orders are going to be converted into intraday orders and they will be squared off by RMS systems if not squared off by the user intraday and will NOT be carried forward	All Segments.
MIS	CNC	Intraday Orders are going to be converted into delivery orders. They will not be squared off by RMS systems and client’s will get delivery holdings in their demat account.	NSE-EQ and BSE-EQ i.e. Cash Segments only
CNC	NRML	Delivery Orders are going to be converted into Positional orders for purposes of additional leverage.	NSE-EQ and BSE-EQ i.e. Cash Segments only if CashPlus Product is activated

Additional Reference Links

• SAMCO Margin Policies and Limits
• Equity Leverage Calculator
• F&O Margin calculator
• Commodity margin calculator

Position Conversions on SAMCO Trading Platforms

• Position Conversion on SAMCO Web Xpress
• Position Conversion on SAMCO NEST Trader

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