Are market orders allowed on Trade API?

As per SEBI regulations, market orders are not allowed for retail algo trading. Kotak Neo recommends using limit orders for better price control and execution.

If you still place a market order, it will be automatically converted into a limit order using a protection price based on the Last Traded Price (LTP):

• Buy orders → limit price set slightly above LTP
• Sell orders → limit price set slightly below LTP

This protection range depends on the instrument and price:

Equity & Futures (EQ / FUT):

o Below ₹100 → within 2% of LTP
o ₹100 to ₹500 → within 1% of LTP
o Above ₹500 → within 0.5% of LTP

Options (OPT):

o Below ₹1 → ₹0.10 fixed
o ₹1 to ₹5 → 10% of LTP
o ₹5 to ₹10 → 5% of LTP
o ₹10 to ₹100 → 3% of LTP
o ₹100 to ₹500 → 2% of LTP
o Above ₹500 → 1% of LTP

Important:
• If LTP is unavailable for options, the order will be rejected
• Even if you place a market order, it will show as a limit order in the order book
• The same logic applies to AMO (After Market Orders)
For precise and predictable execution, always use limit orders.