Order Rejections
Why was your order rejected?
Market orders are executed on the exchange at the best available bid or best available offer. But sometimes due to lack of liquidity, there is no opposite bid-offer or scattered at very far distance. This may lead to sudden price spikes in the market and triggers unconsequential price distortion and price discovery. To prevent this, there is Market Price Protection (MPP), that converts market orders to limit order if there is poor liquidity. Some people may use limit order to place orders in depth, which eventually works as market order. And as explained above, limit order should also not distort market price dicovery hence there is Limit Price Protection (LPP) as well. This has been explained here in detail : https://madefortrade.in/t/limit-price-protection-lpp-on-trading-in-index-options/4055
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