Navia Market Price Protection (MPP) โ Trade Fast, Stay Protected
Imagine this:
You place a market buy order for 1,000 shares in an Index Option trading at โน8. By the time your order reaches the exchange, a sudden spike pushes the price to โน12 โ you end up paying 50% more than expected in just seconds. Shocking? Yes. And thatโs exactly what Naviaโs Market Price Protection (MPP) is designed to prevent.
What is MPP?
Market Price Protection (MPP) shields your market orders from executing at unexpectedly high or low prices due to sudden volatility or low liquidity. NSE, BSE, and MCX have their own MPP limits โ if a broker sends an order outside these limits, it can be cancelled. To protect you and avoid rejections, Navia applies its own MPP limits and liquidity checks before sending orders.
How Navia Applies MPP?
๐ธ You place a Buy/Sell Market Order (or a triggered SL/GTT order).
๐ธ Navia calculates the MPP limit price based on the LTP (or trigger price).
๐ธ Liquidity Check:
โฑ Buy Orders โ Checks Best Ask prices and quantities.
โฑ Sell Orders โ Checks Best Bid prices and quantities.
๐ธ If your entire quantity can be filled within the MPP limit, Navia sends it as a Market Order (fast execution).
๐ธ If not, Navia sends it as a Limit Order at the MPP limit (price protection).
MPP % by Instrument & Price Range set on Navia All-in-one trading platform. Please note that this can change from time to time.
| Security Type | Price Range (โน) | MPP % |
|---|---|---|
| EQ & Futures | < 100 | 2% |
| EQ & Futures | 100 โ 500 | 1% |
| EQ & Futures | > 500 | 0.50% |
| Options (OPT) | < 10 | 5% |
| Options (OPT) | 10 โ 100 | 3% |
| Options (OPT) | >100 โ 500 | 2% |
| Options (OPT) | > 500 | 1% |
Examples of How It Works
| Scenario | LTP / Trigger Price | MPP % | MPP Limit Price | Order Size | Market Depth Snapshot (Ask for Buy and Bid for Sell) | Qty Available Within Limit | Navia Action |
|---|---|---|---|---|---|---|---|
| Buy โ Full Liquidity | โน90 | 2% | โน91.80 | 1,000 shares | โน91 โ 400, โน91.50 โ 300, โน91.80 โ 300 | 1,000 shares | Sends as Market Order |
| Buy โ Partial Liquidity | โน90 | 2% | โน91.80 | 1,000 shares | โน91 โ 400, โน91.50 โ 300, โน91.80 โ 100 | 800 shares | Sends as Limit Order at โน91.80 |
| Sell โ Full Liquidity | โน500 | 1% | โน495 | 500 shares | โน499 โ 200, โน498 โ 200, โน495 โ 100 | 500 shares | Sends as Market Order |
| Triggered Buy โ Stop Loss | โน100 (trigger) | 2% | โน102 | 500 shares | โน101 โ 300, โน101.50 โ 200 | 500 shares | Sends as Market Order |
Key Benefits
โ Protects from bad fills in volatile or illiquid markets.
โ Avoids order rejections from exchange MPP rules.
โ Combines speed & safety market-like execution with limit boundaries.
โ No action needed MPP applies automatically.
Important Considerations
Order Execution
Since your market order becomes a limit order:
โฑ If the market price moves outside the protected range, the order may remain Open.
โฑ You may need to manually adjust the price or switch to a direct limit order for faster execution.
Margin Requirements
Margins are calculated based on the MPP limit price, not the LTP.
For example:
โฑ Buying 100 shares at โน500 with 2% MPP = Margin required for โน510 per share.
โฑ Even if the trade executes at โน500, youโll need funds for โน51,000 at the time of placing the order.
Plan accordingly if youโre trading with leverage or limited funds.
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DISCLAIMER: Investment in securities market are subject to market risks, read all the related documents carefully before investing. The securities quoted are exemplary and are not recommendatory. Full disclaimer: https://bit.ly/naviadisclaimer.
