I had an "open" short position on a call option. When call prices rose sharply, my trading bot, as a stop loss, placed exit order with market protection at default "-1". But the prices jumped above and my exit order was not executed resulting onto losses( my exit order remained "open" as the prices never came back to my order limit price). Had there been facility of "MARKET" orders through API calls, this would not have happened. Don't you think this is dark side of "market protection"? Do you suggest any solutions for such eventualities? -DCK
If you are using the default market protection value (-1), the protection range is automatically calculated on the backend by Zerodha.
If you require more control over execution behavior, you may consider using a custom market protection value, where you can explicitly define the acceptable protection percentage (for example: 2%, 5%, 10%, etc.). You can refer to the market protection documentation for more details.
Under the hood, market protection behaves similarly to placing a limit order with a buffer, since both approaches effectively define an acceptable execution price range rather than functioning as unrestricted market orders.
Please note that increasing the protection range may improve the probability of execution during volatile conditions; however, execution is still not guaranteed and remains subject to market liquidity, exchange LPP (Limit Price Protection) checks, and price movement.
If you require more control over execution behavior, you may consider using a custom market protection value, where you can explicitly define the acceptable protection percentage (for example: 2%, 5%, 10%, etc.). You can refer to the market protection documentation for more details.
Under the hood, market protection behaves similarly to placing a limit order with a buffer, since both approaches effectively define an acceptable execution price range rather than functioning as unrestricted market orders.
Please note that increasing the protection range may improve the probability of execution during volatile conditions; however, execution is still not guaranteed and remains subject to market liquidity, exchange LPP (Limit Price Protection) checks, and price movement.
You can also check the tradingqna post for more details.