Module 2 — Market structure & timing
Trading halts and circuit breakers
5 minute read
In plain English
Exchanges pause trading in a stock when it moves too far too fast, or when news is pending.
Why it matters
A halt can trap you in a position. When it reopens, price can be dramatically different.
Example
A stock halted at $4.10 on a volatility pause can reopen at $3.20 with no chance to exit in between.
Try this
Look up the halt codes used by your exchange and keep them to hand.
Common mistake
Assuming a stop-loss protects you through a halt. It does not.
What this does not mean
A halt says nothing about whether news is good or bad.
Educational content only. Not financial advice.