Query : For stock options, do you keep any price protection? Is there any setting to disable price protection for market orders?

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Query:
For stock options, do you keep any price protection? Is there any setting to disable price protection for market orders?

When we place a market order, it is supposed to get executed as soon as there are available sellers. The current settings often cause orders to remain unexecuted when prices move quickly, or when there is a gap between the last executed order and the current bid and ask prices. As there are algos running fake bids and asks in the market, even when we place a market order, our order gets stuck at a very near price, which is not even a reasonable range to aim for when we click a market order.

So, I want to know what the current price protection range is for stock options when we click a market order. I am very much aware of low liquidity and low volume problems, but here I have experienced this in high liquidity stock options multiple times during high volatility.

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Hi @Varsha777, our risk team applies Market Price Protection (MPP) as follows:

  • 1% MPP for NSE equities

  • 5% MPP for NSE stock options

  • 10% MPP for index options

If the market price moves beyond these ranges, the order may not execute. Additionally, the exchange may apply extra price protection measures during high volatility or specific market conditions, which can further impact execution. this applies to all dhan users and cannot be modified.

This is why, even in liquid contracts, market orders can sometimes remain unexecuted during fast price movements.