A stock is usually halted because news is pending, the price moved too fast and triggered a Limit Up-Limit Down pause, or a regulator needs more information. While it is halted, no trades happen, and your open order waits or gets cancelled depending on your broker.
- The halt code tells you why. T1 means news pending, and LUDP means a volatility pause.
- A Limit Up-Limit Down pause usually lasts five minutes.
- Market-wide circuit breakers pause all stocks at 7%, 13% and 20% drops in the S&P 500.
- The SEC can suspend trading in a stock for up to 10 trading days.
- Check your open orders after a halt. Prices can gap when trading resumes.
Your stock was moving, and then it froze. A halt can feel scary, but most halts are routine and short. The key is the halt code. Here is how to read it.
Why do stocks get halted?
Halts give everyone a fair chance to see important information or catch their breath. The SEC’s Investor.gov explains that exchanges can halt a stock, for example, while news is spreading. The most common reasons are:
- News pending: the company is about to release important news.
- Volatility: the price moved too far, too fast.
- Regulatory: the exchange needs more information, the company is behind on filings, or the SEC stepped in.
What do the halt codes mean?
Nasdaq publishes the official list of halt codes. These are the ones traders see most:
| Code | What it means |
|---|---|
| T1 | News pending. Trading stops until material news is released. |
| T2 | News released. The news is going out. |
| T3 | News and resumption times. Shows when quotes and trading restart. |
| T12 | Additional information requested by Nasdaq. |
| LUDP | Volatility trading pause under Limit Up-Limit Down. |
| LUDS | Volatility trading pause, straddle condition. |
| H4 | Non-compliance with Nasdaq listing requirements. |
| H9 | The company is not current in its required filings. |
| H10 | SEC trading suspension. |
| H11 | Regulatory concern. |
| MWC1–3 | Market-wide circuit breaker, Level 1, 2 or 3. |
The NYSE posts its own current halts list. You can check both for live halts.
What is a Limit Up-Limit Down (LULD) pause?
LULD is a safety system for single stocks. It sets a price band above and below the stock’s average price over the last five minutes.
Investor.gov explains that if the price hits the band and doesn’t move back inside within 15 seconds, trading pauses for five minutes. The bands are 5%, 10%, 20%, or the lesser of $0.15 or 75%, depending on the stock’s price and tier. LULD runs from 9:30 a.m. to 4:00 p.m. Eastern.
Small caps hit LULD pauses often, in both directions. A stock can be paused for moving up just as easily as down.
What are market-wide circuit breakers?
These halt the whole market during a severe drop in the S&P 500. FINRA lists three levels: 7% (Level 1), 13% (Level 2) and 20% (Level 3).
A Level 1 or Level 2 drop before 3:25 p.m. Eastern halts trading for 15 minutes. A Level 3 drop at any time halts trading for the rest of the day.
What is the difference between a halt and an SEC suspension?
An exchange halt is usually short. An SEC trading suspension is more serious. Investor.gov says the SEC can suspend trading in a stock for up to 10 trading days when it believes it is in the public interest, for example when there are questions about the company’s information.
What happens to my orders during a halt?
No trades happen while a stock is halted. What happens to your open order depends on your broker and the type of order. Some orders stay open and wait. Others get cancelled.
Keep these tips in mind:
- Check your open orders as soon as you see a halt.
- Prices can gap far up or down when trading resumes.
- A limit order gives you price control when trading restarts. A market order can fill far from the last price.
- After a big drop, the stock may also be under the SSR stock rule.
Frequently asked questions
Why was my stock halted?
The halt code tells you. T1 means news is pending, LUDP means a volatility pause, T12 means the exchange asked for more information, and H10 means the SEC suspended trading. Check the Nasdaq or NYSE halts list for the code.
How long do trading halts last?
A Limit Up-Limit Down pause usually lasts five minutes. News halts often end after the news is released. An SEC suspension can last up to 10 trading days.
What happens to my order when a stock is halted?
No trades happen during a halt. Depending on your broker and order type, your order may stay open and wait or it may be cancelled. Check your orders right away.
Is a trading halt good or bad?
It can be either. A halt for pending news can come before good or bad news. A volatility pause can happen when a stock moves sharply up or down.
What is the T1 halt code?
T1 means the stock is halted because news is pending. Trading stops until the company releases material news, then usually resumes after a set time.
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Sources
- Nasdaq Trader: Trade halt codes
- Nasdaq Trader: Current trading halts
- NYSE: Current trade halts
- Investor.gov (SEC): Stock Market Circuit Breakers
- FINRA: Guardrails for Market Volatility
- Investor.gov (SEC): Trading Halts
- Investor.gov (SEC): Trading Suspensions
- Limit Up-Limit Down Plan
Not financial advice. This article is for educational purposes only and is not financial, investment, legal or tax advice. It is published by Trade Conquest, owned and operated by Nite Cat, LLC. Rules change; check the cited official sources for the latest version. Trading carries a risk of loss. Trade Conquest does not recommend buying or selling any security.