MIS vs CO vs BO Orders in India: Which Should You Use?

Pick the wrong order type on NSE and you’ll either over-pay on margin or under-protect your downside. MIS, CO, and BO each have a specific use case — and post-2022 SEBI margin changes, the trade-offs have shifted.

This is the current state.

MIS — Margin Intraday Square-off

The default for intraday on most brokers.

• Auto square-off at broker cutoff (see square-off timing).
• Leverage: post-peak-margin reform, this is now uniform across brokers. ~5× on equity, full SPAN+Exposure on F&O. See intraday margin rules.
• Stop-loss: you place it as a separate order.
• Flexibility: highest. Add, scale, modify freely.

Best for: traders who actively manage trades and place stops manually.

CO — Cover Order

Compulsory built-in stop. You can’t place a CO without a stop-loss.

• Built-in stop: enforced at order entry; can’t be removed (only modified within range).
• Lower margin: because the stop is hard-wired, brokers historically gave higher leverage. Post-margin reform, this advantage has shrunk but still exists on some brokers.
• Limited flexibility: can’t scale or add to a CO position.
• Auto square-off: same as MIS.

Best for: discipline-deficient traders. The system forces you to have a stop.

BO — Bracket Order

A one-shot order with entry + stop + target + optional trailing stop.

• Three-leg order: entry → SL → target.
• Status: SEBI’s 2020 peak-margin framework hit BO hardest. Most brokers discontinued BO. As of 2026, BO is largely unavailable on retail platforms.
• If your broker still offers it, BO is the same idea as CO + automated target.

Best for: traders who set-and-forget and want both legs automated. But check availability.

Quick comparison

The right order type by strategy

Discretionary intraday (active management) → MIS

You’re at the screen. You adjust as the trade develops. MIS gives you maximum flexibility.

Set-and-forget breakout → CO

Place entry above a level with a stop just below the breakout candle low. Walk away. The system manages it.

Scalping → MIS

CO’s mandatory stop placement adds latency. For 1-min scalps, the speed of MIS plus a pre-set SL-M is faster.

Earnings or news trade → CO

You want the stop to be unmissable. CO forces it.

Common pitfalls

• Treating MIS leverage as “free money”. Higher leverage = larger losses on the same move. Size by risk, not by margin.
• Stop placed inside the spread. Use SL-M (stop-loss market) for exits on liquid stocks; SL-L (limit) risks not executing.
• Modifying a CO stop into nonsense. CO stops have a permitted range. Pushing it to the maximum every time defeats the discipline benefit.
• Trying to place a BO when your broker has discontinued it. Some brokers still show it grayed out; check before relying on it.

Bank Nifty F&O specifics

On Bank Nifty futures:

• MIS gives the same margin as CO post-reform.
• Most brokers force you out of MIS positions at 3:25 PM.
• Options writing under MIS is allowed only if you have full SPAN+Exposure margin.

For scalping options, see Bank Nifty scalping.

The right setup for most retail traders

For a typical retail intraday trader:

1. Use MIS for normal active trades, with stops placed via SL-M.
2. Use CO when you can’t be at the screen (meetings, etc.).
3. Forget BO — assume it’s not coming back.

FAQs

Does using MIS auto-cancel my pending SL-M order at square-off? Usually yes. The broker’s square-off cancels related pending orders. Confirm in your broker’s docs.

Can I convert MIS to CNC mid-day? Yes, with required delivery margin. Useful when you want to “take the trade longer” — though “convert to delivery” to save a losing position is the most expensive thing you can do.

Is CO’s stop range too wide? On volatile small-caps, sometimes yes — CO won’t allow a tight stop below a certain threshold. In those cases, MIS + manual SL-M is better.

For the full intraday workflow, see the beginner’s guide.