What is a trading halt?
A trading halt is a temporary suspension of trading to affected stocks, or the market as a whole. During a trading halt, investors cannot buy or sell the affected stocks. These usually last less than an hour, but may take longer depending on the nature of the halt.
The Securities and Exchange Commission (SEC) can also suspend trading for up to 10 days if the situation deems it in the public interest and for the protection of investors.
Trading halts are implemented by the stock exchange where the stock is listed (e.g. NYSE or NASDAQ), or by the SEC. Revolut does not determine or control trading halts.
Reasons for trading halts
Reasons for trading halts can include:
- impactful news being released on a specific stock
- extreme volatility
- regulatory concern
- major corporate action
What happens to my orders during a trading halt?
When a stock has been halted for trading by the exchange, you'll see a banner in your Revolut app for the stock affected. You can't make new orders during this period, and any orders in a pending state will be queued until the halt is over, and the stock starts trading once again.
When the halt is over and the stock re-starts trading, your orders will be executed. Prices during this time may change, and your expected price could be different from the time you placed your order.