What Is Market Price Protection (MPP) in FYERS and How Does It Work for Different Order Types?

What Is Market Price Protection (MPP) in FYERS and How Does It Work for Different Order Types?

Market Price Protection (MPP) is a risk-control mechanism that safeguards your trades from excessive slippage on market executions. When you place a market order in volatile or illiquid conditions, MPP restricts how far the execution price can deviate from the Last Traded Price (LTP), helping prevent fills at unexpectedly high or low prices.

Tip: If you’re unsure which protection value to use, select Auto MPP in Smart Limit Orders. The system will choose an appropriate protection band dynamically (generally within 0–3% of LTP).

How MPP works

  • For market orders, FYERS converts your order to a limit order by adding a system-defined protection range to the LTP. This becomes the maximum (buy) or minimum (sell) executable price.
  • The MPP protection range is calculated based on:
    • Trading Segment (Equity, Commodity)
    • Instrument Type (Futures or Options)
    • Exchange (NSE, BSE, MCX)
    • LTP of the contract
  • If the computed price breaches the exchange circuit, the order is set at the circuit limit; if it’s off-tick, it’s rounded to the nearest valid tick.

MPP range (exchange-based)

ExchangeSegmentInstrumentLTP conditionMPP typeMPP value
NSE/BSEFOFUTIDX≤ ₹10,000Amount₹50
FUTIDX> ₹10,000Percent0.5%
NSE/BSEFOFUTSTK≤ ₹50Amount₹0.75
FUTSTK> ₹50Percent1.5%
NSE/BSEFOOPTIDX / OPTSTK≤ ₹10Amount₹1.5
OPTIDX / OPTSTK> ₹10 and ≤ ₹20Percent15%
OPTIDX / OPTSTK> ₹20Percent10%
NSECOMFUTCOM≤ ₹50Amount₹0.75
FUTCOM> ₹50Percent1.5%
NSECOMOPTCOM≤ ₹10Amount₹1.5
OPTCOM> ₹10 and ≤ ₹20Percent15%
OPTCOM> ₹20Percent10%
MCXCOMFUTCOM≤ ₹50Amount₹0.75
FUTCOM> ₹50Percent1.5%
MCXCOMOPTCOM / OPTIDX / OPTSTK≤ ₹10Amount₹1.5
OPTCOM / OPTIDX / OPTSTK> ₹10 and ≤ ₹20Percent15%
OPTCOM / OPTIDX / OPTSTK> ₹20Percent10%

Example

You place a market buy for 1 lot of Index Futures trading at ₹12,000. With MPP at 0.5%, the computed limit is ₹12,000 + ₹60 = ₹12,060. Your order is submitted as a limit order at ₹12,060 and will not execute at a higher price.

Auto MPP in Smart Limit Orders

Selecting Auto MPP tells FYERS to determine a suitable protection band for your Smart Limit Order automatically. This protects you from unfavorable market moves without manual tuning and generally stays within 0–3% of LTP, depending on conditions.

How MPP applies to Smart Orders

MPP also works with FYERS Smart Orders. When a Smart Order triggers a market execution, MPP limits slippage just like above:

  • Smart Limit — Auto MPP can be used; protection is set automatically.
  • Smart Trailing SL (Smart Trail) — When the trailing stop triggers a market exit, MPP caps execution slippage.
  • Smart Step — On market-triggered legs, MPP constrains the fill price within the protection band.

What If

ScenarioOutcome
I place a market order for a futures/optionMPP applies automatically based on exchange rules and the contract’s LTP.
I place a limit orderMPP does not apply. Your specified limit controls price.
Price gaps beyond the MPP bandYour order may remain pending until the market returns within the protected range.
I choose Auto MPP in a Smart Limit OrderSystem selects a dynamic protection band (typically 0–3% of LTP) to balance protection and fills.
I use Smart Orders (Smart Limit, Smart Trail, Smart Step)Whenever a leg executes as a market order, MPP constrains slippage similarly.
Important: In fast markets, orders can remain unfilled if prices stay outside the MPP band. Consider adjusting the order (or using a suitable limit) to balance fill probability with protection.

Last updated: 18 Sep 2025

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