Trading Halts

A trading halt is a temporary suspension of trading in a specific instrument or market, imposed by exchanges or regulators to maintain orderly conditions. Common reasons include major news, extreme price movements, technical issues, or pending disclosures. Trading cannot resume until the halt is lifted.

Limit Up / Limit Down (LULD)

This mechanism limits excessive short-term volatility by setting upper and lower price bands:

• Limit Up: Trading may pause if prices rise too quickly toward the upper band
• Limit Down: Trading may pause if prices fall rapidly toward the lower band