The message means that your market order will be considered within a defined price range around the current Last Traded Price (LTP).
The protection works differently depending on the order side:
- For a buy order, the protected price is set above the current LTP. This accounts for the possibility that you may need to pay a higher price if the market moves up before execution.
- For a sell order, the protected price is set below the current LTP. This accounts for the possibility that you may need to sell at a lower price if the market moves down before execution.
For example, assume:
- Current LTP of a stock: ₹2,400
- Order type: Buy market order
- Applicable MPP: 0.5%
The protected buy price may be calculated up to ₹2,412. Your order can be executed at the best available price within this protection range.
MPP does not guarantee execution at the LTP or at the protected price. It defines the price boundary considered for the market order. If the market moves beyond the allowed range, the order may remain partially executed or unexecuted.