What is MPP and how does it affect trade execution?

What is MPP and how does it affect trade execution?

Market Price Protection (MPP) is an automated feature that helps optimise trade execution by preventing orders from being executed at significantly unfavourable prices. It applies a predefined protection range based on the contract type and Last Traded Price (LTP), ensuring better price stability.

How does MPP work?

MPP is applied differently depending on the segment, instrument type, and LTP. The protection is either a fixed amount or a percentage of the contract value:

Segment
Instrument Type
LTP Condition
MPP Type
MPP Value
Index Futures (NSE, BSE)
Futures (FUTIDX)
≤ ₹10,000
Amount
₹50


> ₹10,000
Percentage
0.5%
Equity Futures (NSE, BSE)
Futures (FUTSTK)
≤ ₹50
Amount
₹0.75


> ₹50
Percentage
1.5%
Equity & Index Options (NSE, BSE)
Options (OPTIDX, OPTSTK)
≤ ₹50
Amount
₹10


> ₹50
Percentage
10%
Commodities (NSE, MCX)
Futures (FUTCOM)
≤ ₹50
Amount
₹0.75


> ₹50
Percentage
1.5%

Options (OPTCOM)
≤ ₹50
Amount
₹10


> ₹50
Percentage
10%

Note: Market orders (no MPP) are allowed for NSE Index Options (current week and current month), MCX Futures, NSE Index Futures, and NSE Stock Futures.

Example of MPP in Action  

If you place a market order to buy 1 lot of a Index futures contract at ₹12,000, the MPP system will apply a 0.5% protection limit. This means your order will be placed with a limit price of ₹12,060 (₹12,000 + 0.5%), preventing excessive price deviation.

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