Why are the option orders getting rejected, stating that limit orders that are far away from the LTP are restricted?

To maintain a stable and fair price discovery process, TradeJini has implemented measures to address concerns related to certain trading activities. Some traders place orders that are not reflective of the current market conditions, leading to potential issues in the price discovery mechanism, such as freak trades.

In order to mitigate this, TradeJini has introduced a restriction on limit orders for stock and index option trades. Specifically, limit buy orders with prices exceeding 150% of the last traded price (LTP) and limit sell orders below 50% of the LTP are temporarily blocked. It’s important to note that this restriction applies only when the LTP is higher than 100₹. If traders wish to place limit orders outside of these limits, they can utilize Good Till Triggered (GTT) orders.