Yesterday Gamestop (GME) and AMC (AMC) both halted in a specific type of halt.
These are limit-up-limit-down halts.
These halts are intended to prevent securities from trading outside predefined bands of price/percentage change. Any change above or below those predefined bands within a five minute period creates a five minute trading halt.
This only occurs within a certain price band within 15 seconds.
These type of halts are less frequent than ones many traders are aware of. However, such a halt became possible in 2013, although controversial.
These halts were especially curious as yesterday numerous limit orders on GME came through after the halt at 420.69. These do show that some error occurred both in CBOE, OPRA and data exchanges.
To learn more about halts, stay tuned to unusualwhales.com's upcoming educational series. In the meantime, check here.
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