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?
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. -Jamaal
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.