TSXV:RLV.H - Post by User
Post by
neoneilon Jun 03, 2021 10:18am
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Post# 33318364
Just facts...
Just facts... The long trading halts are typically enacted in anticipation of a good news announcement! However, the move that usually results in a halt we now have is pretty fun, if you are on the long side of the trade and its spiking in a favourable direction. Parabolic movers move a large amount of volume and the price jumps quickly. This usually occurs because of an institutional traders careless order, news good or bad, or buy and sell orders triggering when support or resistance is breached. (Buy stops!)
During the halt, specialists and (market makers) are now determining the severity of the order imbalance to decide what price to re-open the trading at. In situations with significantly positive news a stock may re-open at a dramatically higher price. The exchanges will post information as too when the security will resume trading. Pricing usually starts to display five minutes before trading resumes. Upon resumption, volatility and volume spikes as panic orders are furiously executed as market forces take over. In some cases, the stock may halt again (circuit breakers).
Non-regulatory halts are like speed bumps that trigger when a stock breaches a price percentage move threshold either up or down too quickly. These halts are often referred to as “circuit breakers” and meant to pause the action to stabilize the order imbalance. The TSX / TSXV implements circuit breakers on stocks that quickly spike beyond the 10% or 20% range threshold within a rolling five-minute time period for more than 15 seconds. The halt lasts for five minutes.