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Why does a nudge indicate that the order price is x% above or below the Last Traded Price (LTP)?

This nudge appears when a limit order is placed above the LTP for buy orders or below the LTP for sell orders. In such cases, the limit order is executed as a market order, also referred to as a market protection order. This happens because limit orders are designed to enable you to buy or sell an instrument at a specified price or a more favorable price.