What is MPP and how does it affect trade execution?
Market Price Protection (MPP) is a risk-control feature used by FYERS to protect you from trades being executed at significantly unfavorable prices. It helps prevent market orders from slipping far away from the expected price, especially in fast-moving or illiquid contracts.
What is MPP?
MPP automatically converts certain market orders into limit orders by applying a price protection range. This range depends on:
- Segment (Equity, Commodity, Index)
- Instrument Type (Futures or Options)
- Last Traded Price (LTP)
The system either uses a fixed amount or a percentage of the LTP to cap the order’s execution price.
MPP Range Table
| Segment | Instrument | LTP Condition | MPP Type | MPP Value |
|---|
| Index Futures (NSE/BSE) | FUTIDX | ≤ ₹10,000 | Amount | ₹50 |
| > ₹10,000 | Percentage | 0.5% |
| Equity Futures (NSE/BSE) | FUTSTK | ≤ ₹50 | Amount | ₹0.75 |
| > ₹50 | Percentage | 1.5% |
| Equity & Index Options (NSE/BSE) | OPTIDX/OPTSTK | ≤ ₹50 | Amount | ₹10 |
| > ₹50 | Percentage | 10% |
| Commodity Futures (MCX) | FUTCOM | ≤ ₹50 | Amount | ₹0.75 |
| > ₹50 | Percentage | 1.5% |
| Commodity Options | OPTCOM | ≤ ₹50 | Amount | ₹10 |
| > ₹50 | Percentage | 10% |
MPP in Action – Example
If you place a market order to buy 1 lot of an Index Futures contract priced at ₹12,000:
- MPP applies a 0.5% protection, resulting in a limit price of ₹12,060
- Your order is sent to the exchange with a price cap, preventing execution beyond that price
MPP is especially useful in volatile or low-liquidity instruments. It protects you from accidental price spikes or dips.
What if...
| Scenario | Outcome |
|---|
| I place a market order for a stock future | MPP applies based on its LTP and rules defined above. |
| I use limit orders instead | MPP does not apply—your limit price governs execution. |
| The market gaps beyond the MPP range | The order may not execute or remain pending until price comes within the MPP range. |
Last updated: 24 Jun 2025
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