Exchange and SEC-Imposed Trading Halts on Individual Stocks
Trading halts for specific symbols may be implemented for a variety of reasons and can interrupt your orders to buy or sell particular securities. These stock-based halts are initiated by the specific stock exchange where the stock is listed or by the Securities and Exchange Commission, not by Robinhood.
During a trading halt, one or more securities exchanges will prevent all trades of the affected security. These halts typically last less than an hour but may be longer. Halts can range from occurring multiple times in a single trading day to remain in place over multiple trading days. If a security is in a trading pause in the last 10 minutes of normal trading hours, the primary listing exchange will not reopen trading on that security until the next trading day. You can keep track of current and historical trading halts across both the NYSE and the Nasdaq websites.
Keep in mind, market-wide trading halts can also be implemented by exchanges during periods of heightened volatility across the broader market.
Trading halts are usually put in place by one or more of the stock exchanges or the SEC (Securities and Exchange Commission). A trading halt for a specific security could be due to a number of reasons, like waiting for substantial news to be released or periods of high volatility. You can find a more detailed list of trading halts reasons here.
When a halt is in place, you can place orders as usual, but they won’t be processed until after the halt has been removed from the affected security.
You can place new orders during a trading halt, but new or existing orders will not be processed until the market reopens or the trading halt is removed. This applies to market-wide halts and halts on specific securities. If you enter a “Good Til Cancelled” order and the market closes while a halt is in effect, your order will be held for execution at the opening of the next trading day. Additionally, orders entered as “Good for the Day” will be cancelled at the end of the trading day regardless of whether a trading halt is in effect.
All new and outstanding orders will remain “pending” until markets reopen, or the trading halt is removed. When the halt ends, your orders will be processed. This also applies to options orders.
There are a few reasons why your stock orders might not have been filled after a halt is lifted. The most common are listed below, however you should check the details of your specific order.
If you submitted a market order to buy during a halt and the price increases by more than 5%, your order won’t execute due to the 5% collar on the order. If the price falls back within the 5% collar of the original order price, your order will execute if the market is still open. If your buying power is within 5% of the total cost of your market order, you may not be able to place a market order. Limit orders do not have the 5% collar. Market sell orders during trading hours are not collared.
Market orders held or placed during the halt may fill at a very different price once trading resumes.
Check out this article for more information on market orders.
It is possible for the halted security to begin trading at a very different price once trading resumes. If your stop or limit price hasn’t been reached, your order will remain pending until there's a buyer or seller willing to trade at your specified price.
While a halt is in place you may still cancel a pending order before it’s executed in the market. However, there are some differences when trying to cancel a pending fractional order.
The option to cancel your fractional order may be visible, but your order cannot be cancelled until the halt is lifted and the stock begins trading again. We are currently working to make improvements with this experience. Again, these halts are not Robinhood’s decision and the timing of them is beyond our control.
If the order has been routed to a market maker, and a trading halt goes into effect before the order executes, unfortunately, at that point you would not be able to cancel your fractional order. The order would then execute once the halt is lifted.
When trading is halted, charts reflect the price of the last filled order. No trades are being executed, so prices neither rise, nor fall. Rest assured, the price most likely didn’t flatline at zero. When the market reopens, the chart should display normally again.
During a trading halt, no orders are being processed so the “mark price” defaults to the $0.01 on your Robinhood app. Market prices should display normally after the halt is over.
If you believe one of your orders was affected by a trading halt and still have questions, please get in touch with our support team. Please provide as much information as you can about the order(s) you placed and share any questions. We’re happy to assist you.
Fractional shares are illiquid outside of Robinhood and not transferable. For a complete explanation of conditions, restrictions and limitations associated with fractional shares, see our Customer Agreement related to fractional shares. All investments involve risks, including the loss of principal. Investors should consider their investment objectives and risks carefully before investing. Robinhood Financial LLC is a registered broker dealer (member SIPC). Robinhood Securities, LLC provides brokerage clearing services (member SIPC). All are subsidiaries of Robinhood Markets, Inc. (‘Robinhood’).