How is the MPP percentage decided?

How is the MPP percentage decided?

The MPP percentage is not the same for every order. It is determined based on:
  • Exchange
  • Trading segment
  • Instrument type
  • Option premium or price band, where applicable
The applicable MPP percentage is used to calculate the protected price and the additional provisional margin.
Indicative protection levels are:
Segment or instrument
Applicable MPP
Cash stocks on NSE and BSE
0.5%
Stock futures
1%
Index futures
0.5%
Index options below ₹10
20%
Index options from ₹10 to ₹20
10%
Index options from ₹20 to ₹50
5%
Index options above ₹50
2.5%
Stock options below ₹10
40%
Stock options from ₹10 to ₹20
20%
Stock options from ₹20 to ₹50
10%
Stock options above ₹50
5%
Commodity futures
1%
Commodity options below ₹10
20%
Commodity options from ₹10 to ₹20
10%
Commodity options from ₹20 to ₹50
5%
Commodity options above ₹50
2.5%
For example, if an index option is trading at ₹9, the applicable MPP may be up to 20%. If a stock is trading at ₹2,400, the applicable MPP may be 0.5%.
The percentage displayed in the MPP details is the percentage applicable to that specific order.