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RobotDroid

05/02/22 9:56 AM

#464352 RE: jimmy667 #464351

Maybe not...Why would a OTC stock stop trading?
The SEC may suspend trading in a stock when the Commission is of the opinion that a suspension is required to protect investors and the public interest.

As a full-time day trader, it’s inevitable that you will get caught in circuit breaker halts from time to time. That means it’s important to understand why halts happen, what causes them, and how to deal with them.

Any stock in the market can get halted at any time. The two most common reasons a stock will be halted is Pending News, or for a Volatility Pause. When a stock is halted it cannot be traded by anyone.

The risk with halts is that when the stock reopens, it can reopen at any price. There really isn’t much you can do if you get stuck in a halt except wait until trading resume.

A halt pending news can last hours or even longer, while Volatility Pauses are usually 5min, but can be as long as 10-min.



Circuit Breaker Halt Types
Code: LUDP – Volatility Trading Pause: Stocks can also spike up or down and get halted on a volatility halt or circuit breaker.

Code: T1 – News Pending: The company has requested trading of the stock be halted while they release material news. This can be good or bad. When the stock reopens, the market will react to the news. Sometimes stocks that are moving quickly on rumors will get halted while the company comes out and responds to the rumor. That’s why holding stocks that are moving on rumors can expose you to halt risk.

Code: H10 – SEC has suspended trading in this stock (common among penny stocks and companies suspected of stock promotion or fraud)

This is a 5min halt to pause trading for stocks priced above $3 and that move more than 10% in a 5min period.

Stocks under $3.00 have different circuit breaker rules, and S&P 500 stocks and Indices also have different rules.

When a stock is halted, you cannot trade it, you have to wait.