Frequently Asked Questions

To prevent slippage (buying too high or selling too low) in fast-moving or illiquid contracts, especially options.

Market Orders (Buy and Sell). It automatically converts them to Limit Orders for Option contracts.

It calculates a defined percentage buffer around the current price and turns your Market Order into a Limit Order at that buffer price.

Your order will be unexecuted or partially executed, and the remaining quantity will stay pending as a Limit Order.

No, it is a mandatory, broker + exchange-enforced risk control measure.

Default MPP percentages for Option contracts:

Index Options = 10% of LTP or 20 Rupees Minimum absolute value

Stock Options = 20% of LTP or 5 Rupees Minimum absolute value

An index option contract trading at LTP 300, if a buy market order is placed for 1000 quantity by a user it will be converted into a Limit order with a maximum buffer (MPP) of 330.

Scenario 1: Next available bid is below 330 with quantity more than 1000

Result: Order will be fully executed at best available price.

Scenario 2: Next available bid is beyond 330 with quantity more than 1000

Result: Order will be pending (which the user can modify later)

Scenario 3: Next available bid is at 330 with quantity of 500

Result: Order will be partially executed for 500 quantity and remaining 500 quantity will be pending.