Dear Community Members,
We would like to inform you about a new risk control feature—Limit Price Protection (LPP)—that has been implemented in Stock Options.
Background:
To mitigate such risks and protect both customers and the broker, we’ve now implemented LPP functionality. This will apply to both Fresh and Square-off orders in all Stock Options contracts.
How LPP Works?
The Limit Price range for placing orders is now restricted based on the Last Traded Price (LTP) of the contract. The maximum deviation allowed in the Limit Price is defined by a combination of percentage-based and absolute-value-based thresholds. The lower of the two will apply.
| LTP Range (Rs.) | % Limit (A) | Max Adj. in Rs. (B) |
|---|---|---|
| 0 - 1 | NA | 1 |
| 1.01 - 5 | 100% | 2 |
| 5.01 - 10 | 100% | 5 |
| 10.01 - 20 | 100% | 10 |
| 20.01 - 50 | 75% | 20 |
| 50.01 & above | 40% (as per exchange) | NA |
Examples:
- If the LTP is ₹0.60 and you want to place a Buy order, the maximum limit price allowed will be ₹0.60 + ₹1.00 = ₹1.60.
- If the LTP is ₹4.00, then the allowed Buy price will be up to ₹6.00 (lower of 100% of LTP or ₹2).
- For Sell orders, if the LTP is ₹4.00, the minimum allowed price will be ₹2.00.
This logic is applied similarly across all price bands listed in the table.
Order Rejection Message:
If an order is placed outside the permitted LPP range, it will be rejected with the following message:
LPP Rejection: Limit Price entered should be within the range of ₹ to ₹.
This feature is aimed at promoting a more controlled and risk-managed trading environment. For any queries, feel free to reach out to our support team.