A temporary pause in trading on a particular security or futures contract. For securities, a trading halt is sometimes issued pending the release of news but may also occur due to an imbalance of buy and sell orders. On a futures exchange, a trading halt may be called when the bid or ask for a given contract exceeds the maximum price fluctuation. In either case, the purpose of the halt is to prevent irrational buying or panic selling and repair market liquidity by giving investors a chance to pause and appraise the situation. See circuit breaker.
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imbalance of orders
maximum price fluctuation
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