Investing term

What is Trading halt?

A pause on a single stock's trading, often around news or volatility.

A trading halt is a temporary pause on trading in a single stock, usually around pending news or a burst of extreme volatility. It gives the market time to digest information and prevents disorderly, panic-driven pricing. Halts are normal and brief; trading resumes once the news is out or volatility settles, often with the price gapping to reflect the new information.

For example

A stock is halted minutes before a major announcement; when it reopens, the price jumps to reflect the news that everyone can now see.

Trading halt is taught hands-on in Stage 5 — How Markets Work Globally.

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Related terms

AskThe lowest price a seller is currently willing to accept.BidThe highest price a buyer is currently willing to pay.Circuit breakerAn automatic trading halt that fires when the broad market falls past a threshold.ExchangeWhere buyers and sellers of the same stock meet to trade.
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