When the SEC suspends trading....?

Discussion in 'Order Execution' started by Kastro_316, Oct 8, 2005.

  1. Let's say a stock is trading at $15, and the SEC suspends all trading, and when the suspension is lifted and the stock is now worth $3, would your stop loss stop it before it hit $3?
  2. As far as I know its like a stock that gaps down at the open. Your stop would trigger but it would go as a market order to sell at $3. I might be wrong but I'm pretty sure this is the case.

  3. Sanjuro


    XYZ trading at $15
    Stop Loss at $14
    XYZ halts trading at $15
    XYZ opens at $3
    Your Stop Loss triggers, you sell at $3

    Stop Loss doesn't protect you from gaps or trading halts so you need to watch how much percent of capital you put in a single stock.
  4. Thank you for clearning that up for me!