The product type in Zerodha decides the extent of leverage offered to you for trading.
There are three product types available in Zerodha:
Cash and Carry (CNC)
CNC product type is used for equity delivery trading (trade to take the delivery of shares in demat account or sale shares from your demat holdings). There is no leverage offered for CNC trades. The CNC trade is offered brokerage-free at Zerodha.
Margin Intraday Square-off (MIS)
MIS product type is used for intraday trading. Trades get auto-squared if positions are not squared off within stipulated timelines. Decent leverage facility offered.
Normal (NRML)
NRML product type is used to take overnight position in F&O. There is no leverage offered for NRML product type at Zerodha.