Navia Limit Price Protection (LPP) – Your Safety Net Against Abnormal Trades

One small typo in trading… and you could lose lakhs!

Imagine this:

You mean to buy a futures contract at ₹500, but accidentally type ₹5,000 — or someone tries to place an order way off from the market price to manipulate trades. Without safeguards, such trades could cause huge losses and disrupt market fairness.

That’s where Navia’s Limit Price Protection (LPP) comes in — protecting your trades, your money, and market integrity.

What is LPP?

LPP is a pre-trade safety check that ensures all limit orders in the Futures & Options (F&O) are within a safe, exchange-defined price range.

It blocks:

🔸 Buy orders at abnormally high or low prices.

🔸 Sell orders at abnormally high or low prices.

This means you can’t:

🔸 Buy too high (overpay).

🔸 Buy too low (exploit or accidentally place unrealistic bids).

🔸 Sell too high (manipulate offers).

🔸 Sell too low (undercut the market badly).

How LPP Works?

Reference Price Set

➔ At market open: Based on underlying price, interest rates, and option pricing models.

➔ During the day: Based on average traded price over the last 30 seconds.

Safe Range Applied (as per NSE rules)

Instrument	Reference Price	LPP Range
Index Futures (FUTIDX)	≤ ₹10,000 → ± ₹200	>₹10,000 → ± 2%
Stock Futures (FUTSTK)	≤ ₹50 → ± ₹1.5	>₹50 → ± 3%
Index & Stock Options (OPTIDX / OPTSTK)	≤ ₹50 → ± ₹20	>₹50 → ± 40%

Order Validation

➔ Example: If LPP range is ₹80–₹120 and you try to buy above ₹120 or below ₹80 — order rejected.

➔ Same for sell orders: You can’t place them above ₹120 or below ₹80.

Examples – How It Saves You

Scenario	LPP Range	Order Price	Outcome
Buy Too High	₹80–₹120	₹125	❌ Rejected
Buy Too Low	₹80–₹120	₹50	❌ Rejected
Sell Too Low	₹80–₹120	₹75	❌ Rejected
Sell Too High	₹80–₹120	₹150	❌ Rejected
Valid Buy	₹80–₹120	₹110	✅ Accepted
Valid Sell	₹80–₹120	₹115	✅ Accepted

Navia’s Edge

While LPP is mandatory for NSE’s and BSE equity derivatives, Navia has extended the same protection to MCX — ensuring consistent safeguards wherever you trade.

This means:

➱ Your trades are safer – No fat-finger losses.

➱ Market stays healthy – No extreme, manipulative orders.

Key Benefits

✅ Works both ways — stops unrealistic buy and sell orders.

✅ Prevents costly input mistakes.

✅ Blocks manipulative price setting

✅ Works automatically — no setup required.

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DISCLAIMER: Investments in the securities market are subject to market risks, read all the related documents carefully before investing. The securities quoted are exemplary and are not recommendatory. Brokerage will not exceed the SEBI prescribed limit.