TradeSnap / Halt Code Guide
When a stock gets halted, the exchange assigns a halt code that tells you exactly why it stopped trading. Understanding these codes is the difference between reacting and anticipating. Here's everything you need to know.
A trading halt is a temporary pause in trading activity for a specific security. Halts are issued by the exchange (NYSE, Nasdaq, or FINRA) for a variety of reasons — from extreme price volatility to pending corporate news to technical issues. During a halt, no orders can be executed.
Halts typically last between 5 and 15 minutes, though regulatory halts (T1, T12) can last significantly longer. The resume is often where the opportunity is — prices can gap significantly in either direction when trading resumes.
Our halt history database tracks outcomes after every halt — what percentage of LUDS halts go up vs. down on resume, broken down by time of day, price range, and pre-halt sentiment. Available to Pro and Elite members.
These are the most common halt types for active day traders. They're triggered automatically by the Limit Up-Limit Down (LULD) mechanism, which prevents excessive short-term volatility.
Triggered when a stock's price falls below the lower price band for more than 15 seconds. The exchange halts trading to let the market stabilize. This is the most common halt in small-cap and volatile stocks.
Triggered when a stock's price rises above the upper price band for more than 15 seconds. Common in momentum plays, news-driven stocks, and short squeezes. Often signals strong buying interest.
The LULD mechanism calculates a reference price (typically a 5-minute average) and sets bands around it. For stocks priced above $3.00, the bands are generally ±5% during regular market hours. For lower-priced stocks, the bands are wider (±20%). If the price moves outside these bands for more than 15 consecutive seconds, a halt is triggered automatically.
T-code halts are issued by FINRA or the exchange for regulatory reasons — usually related to pending news, material information, or compliance issues. These tend to last longer than LULD halts and can signal significant upcoming news.
Trading halted pending release of material news. The company has notified the exchange that an announcement is imminent. Can be earnings, M&A activity, regulatory decisions, or any market-moving disclosure.
Trading halted to allow dissemination of material news that has just been released. The exchange halts to ensure all market participants have equal access to the information before trading resumes.
Triggered when a stock moves more than 10% in a 5-minute period. An extended version of the LULD mechanism. More severe than LUDS/LUDP and often indicates extreme volatility or a major news event.
FINRA has requested additional information from the company. One of the more serious halt codes — can indicate regulatory concerns. Duration is often indefinite until the company responds. Treat with significant caution.
Triggered when the S&P 500 drops 7% (Level 1), 13% (Level 2), or 20% (Level 3) from the prior day's close. A Level 3 halt closes the market for the rest of the day. Last seen in March 2020.
A general trading halt not covered by more specific codes. Can be issued for technical issues, extraordinary circumstances, or at the request of the listed company.
Occurs at the opening of an IPO as the exchange works through the opening auction process. Also called a "delayed open." Can last 30 minutes to several hours depending on order book balance.
Halted due to a company failing to meet listing requirements. Can indicate financial distress or compliance failures. Frequently precedes a delisting. Significant risk for long positions.
The resume after a halt is often the highest-volume, highest-volatility moment of the trading day for that stock. Here's how experienced traders approach it:
LUDS halts that occur before 10:30 AM with negative news sentiment resume lower 71% of the time in our historical database. After 10:30 AM, the bounce rate increases significantly. Context matters.
TradeSnap sends push notifications the second a halt is detected — with the halt code, pre-halt price, news sentiment, RSI, and historical outcome statistics all in one context card. No more watching 5 different tabs.