Terms and Conditions - Market Price Protection
These Terms and Conditions for Market Price Protection ("MPP Terms") supplement and are to be read in conjunction with the master Terms of Use of NU Investors Technologies Private Limited ("NU," "We," "Us," or "Our"). By placing an order that uses the Market Price Protection feature through the Lemonn Platform, you ("You," "Your," or "User") agree to be bound by these MPP Terms, the master Terms of Use, our Privacy Policy, and all other applicable policies.
1. Introduction to Market Price Protection
Market Price Protection (MPP) is a feature designed to protect users from the potential negative impact of high volatility or low liquidity when placing market orders. It aims to prevent order execution at a price significantly different from the Last Traded Price (LTP) at the time of order placement.
2. How Market Price Protection Works
When you place a market order for an eligible security, the Market Price Protection feature automatically converts it into a Limit Order on the backend. This limit price is set at a predefined percentage away from the LTP, creating a "protection range."
– For Buy Orders: A limit price is set at a certain percentage above the LTP. Your order can be executed at any price up to this limit.
– For Sell Orders: A limit price is set at a certain percentage below the LTP. Your order can be executed at any price down to this limit.
This mechanism ensures that your market order does not get executed at a price beyond this calculated protection range.
3. Applicability and Eligibility
– Order Type: This feature is applicable only to Market Orders. It does not apply to Limit Orders or Stop-Loss Orders.
– Segment: Market Price Protection is currently available only for entry orders in the Options (both Index and Stock Options) segments. It is not applicable for Futures, Delivery, or MTF segments, nor for exiting the existing options positions.
4. Protection Range
The protection range is determined by the premium of the Option:
– For options with a premium of ₹10 or less, the protection range is 20%.
– For options with a premium greater than ₹10, the protection range is 3%.
NU reserves the right to change these protection ranges at its discretion without prior notice.
5. Partial or Non-Execution
Due to price fluctuations, your market order with protection may not be executed instantly or in full.
– Partial Execution: If your order is only partially filled within the protection range, the remaining unexecuted quantity will become a pending Limit Order at the protection range's boundary price.
– Non-Execution: If the market price moves beyond the protection range before your order can be executed, the entire order will become a pending Limit Order at the protection range's boundary price.
You can view and manage these pending orders from the "Open Orders" tab on the Lemonn Platform.
6. Fund Requirements
The fund required for a market order with price protection will be calculated based on the limit price (the edge of the protection range), not the LTP. This may result in a higher fund block compared to a standard market order. If the order executes at a price better than the limit price, any excess funds blocked will be released.
7. Modification and Cancellation
You can switch-on and off the MPP under the ‘Advanced Orders’ section on the order pad. You can modify or cancel a pending protected order (i.e., an order that has become a limit order due to non-execution) from the "Open Orders" tab, subject to exchange rules and regulations.
8. Disclosures and Limitations
– No Guarantee of Execution: The Market Price Protection feature does not guarantee the execution of Your order. Execution is subject to market liquidity and price availability within the protection range.
– System and Technical Issues: NU shall not be liable for any loss, damage, or foregone opportunity arising from any system or technical issues that may affect the functioning of the Market Price Protection feature.
For any queries or clarifications, please contact our support team at [email protected].
