Regarding the Freak Trade in the account

Trading
1

I had placed a market order to square off my positions, and to my surprise, the order was executed at 1000 while the LTP of the contract was 2000 Rs away. I understand this could be due to freak trades. However, the NSE has Market Price Protection (MPP) in place and the order should have been rejected by the exchange or Zerodha shouldn’t have allowed the order if the market depth was shallow.

I have two questions:

  1. Does the exchange have any mechanism where the market order will match another market order?
  2. Why did Zerodha allow the market order?

@ShubhS9

2

You didn’t specify the instrument, expiry date etc