Market Price Protection ensures your market order is converted to a limit order within a predefined price range. The goal? To safeguard you from sudden and extreme price movements, especially in volatile or illiquid markets.
The implementation is in alignment with key circulars issued by the NSE and BSE, including:
These references outline the foundational principles and parameters that govern pre-trade risk controls and market price protection, ensuring orderly trading and effective risk management.
When you see the nudge “Your market order is protected” on the order window, it means your market order will execute as a limit order with a small buffer over the current market price. For instance:
These buffers are part of Angel One’s risk controls to prevent unfavorable price execution due to market volatility.
Angel One calculates MPP percentages internally based on the type of instrument and in adherence to the regulatory framework provided by exchanges. Below are the buffers defined by our internal policies for enhanced market price protection:
| Exchange and Segment | Protection % |
| Cash Stock (NSE and BSE) | 0.5% |
| NFO and BFO | |
| – Future stocks | 1% |
| – Future index | 0.5% |
| Index Options | |
| – Less than ₹10 | 20% |
| – ₹10 – ₹20 | 10% |
| – ₹20 – ₹50 | 5% |
| – More than ₹50 | 2.5% |
| Stock Options | |
| – Less than ₹10 | 40% |
| – ₹10 – ₹20 | 20% |
| – ₹20 – ₹50 | 10% |
| – More than ₹50 | 5% |
| MCX, NSE Commodity and NCDEX | |
| – Futures | 1% |
| – Options | |
| – Less than ₹10 | 20% |
| – ₹10 – ₹20 | 10% |
| – ₹20 – ₹50 | 5% |
| – More than ₹50 | 2.5% |
When you place an order, you may also notice a line in the Margin Required section mentioning Provisional Margin. This is an additional amount temporarily held along with the required margin to accommodate the buffer range provided by MPP.
Supporting MPP Buffers: Since MPP converts market orders into limit orders with a predefined price buffer, Provisional Margin temporarily holds extra funds to cover this higher limit price.
Temporary Hold: The Provisional Margin is only a temporary block. Once the order is either executed (at the best available price within the buffer) or canceled, the unused portion of the Provisional Margin is immediately released back to your account.
Example:
Instrument: RELIANCE (Cash Stock)
LTP: ₹2,400
Margin for Order: ₹2,40,000 (for 100 shares).
Provisional Margin: ₹1,200 (0.5% of the LTP).
Total Margin Required: ₹2,41,200.
After the order is executed at the best available price within ₹2,412, the unused portion of the Provisional Margin is released back to your account.
You can view this clearly detailed in the Orderpad under the Margin Required section for complete transparency.
If the price moves beyond the protected range set by MPP, your market order might remain partially executed or unexecuted until the price returns within the specified limit. This ensures that you’re shielded from extreme volatility, even in highly illiquid stocks or contracts.
The Market Price Protection feature is integrated directly into the order window:
Market orders are convenient for quick execution but can be risky, especially in illiquid or volatile conditions. Without protection, your order could execute at prices far away from the LTP, potentially causing significant losses or inefficiencies.
With Market Price Protection, you get:
Market Price Protection (MPP) is currently not applicable to certain specific types of orders, such as split orders, basket orders, exit all positions, simultaneous cancel-and-place order operations, after-market and schedule orders, SIP orders, pre-market orders, and board lot orders.
This simple yet effective feature ensures that Angel One executes your market orders efficiently within the defined parameters.
This is for educational purposes only.
Investments in securities market are subject to market risks, read all the related documents carefully before investing.
The securities are quoted as an example and not as a recommendation
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