Is Displace or misplace correct

Answer 1

Both are correct words but which one you use depends on what you mean. If you displace something you put it out of its correct place. If you misplace something then you have lost it because you don't know where to find it. The displaced object may not be lost at all, but it shouldn't be where it is, e.g. you might displace your shoulder joint.

Answer 2

"Displace" is the correct term and means to move something from its usual position. "Misplace" is also correct and means to put something in the wrong place, typically resulting in it being lost.