LULD Halts (Limit up, Limit down)

Today Gamestop (GME) and AMC both halted in a specific type of halt.

These are limit-up-limit-down halts.

These halts are intended to prevent securities from trading outside predefined bands of price/percentage change. Any change above or below those predefined bands within a five minute period creates a five minute trading halt.

This only occurs within a certain price band within 15 seconds.

These type of halts are less frequent than ones many traders are aware of. However, such a halt became possible in 2013, although controversial.

To learn more about halts, stay tuned to unusualwhales.com's upcoming educational series. In the meantime, check nasdaqtrader.com/content/MarketRegulation/LULD_FAQ.pdf