What is trading stop?

Trading stops are short periods when active trading is suspended. Trading issues often concern some type of public announcement concerning the security or company that issues security. Once the announcement is made, trading stops and trading with security can continue.

However, there is a second reason for the enactment of stop trading. In the event that a certain type of order imbalance occurs with a given security, the Office may impose a temporary takeover on the stock market for any purchase or sale of security. In principle, it is an attempt to set safety back to a state of balance between purchase and sale commands.

will usually stop trading for a short time. If trading stopped as a result of an ongoing public announcement, the stop can be terminated as quickly as half an hour after the notification is completed. The idea of ​​traning halt in this case is to allow investorsThe same time to evaluate the information contained in the public announcement and decide whether to buy or sell security shares.

Almost every investment market can experience trading. As long as the security concerned is actively traded, there is a potential for the order ratio for sale and purchase orders to get out of balance. At the same time, there are very common announcements that may affect the future business activity of the security. The award -winning investor realizes it and automatically does not assume that something is happening when it is called trading.

It is important to realize that stopping trading is not a repressive measure. Suspered trading is usually used as a means to maintain a certain degree of order and fair play within the function of the market. From this point of view, resolutable issuance of trading stops in the best interest of all parties concerned.

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