Market Price Protection (MPP) converts market orders to limit orders based on a predefined buffer to protect users from unexpected price fluctuations. This is applied for illiquid contracts.
For eg. If LTP is 100 for an illiquid contract which you are buying at market, we send a limit order of 100+2 i.e. 102.
The buffer value is determined by the segment and LTP as follows:
|
Segment |
LTP (INR) |
Buffer |
|
Stocks, ETFs and Futures |
Less than or equal to 100 |
2% of LTP |
|
Stocks, ETFs and Futures |
Greater than 100 and Less than or equal to 1000 |
1% of LTP |
|
Stocks, ETFs and Futures |
Greater than 1000 |
0.5% of LTP |
|
Options |
Less than or equal to 500 |
₹5 |
|
Options |
Greater than 500 and Less than or equal to 1000 |
₹10 |
|
Options |
Greater than 1000 |
1% of LTP |