What are LULDs? | Nasdaq


Yesyesterday Gamestop (GME) and AMC (AMC) both stopped in a specific type of stop.

These are limit-high-limit-low stops.

These stops are intended to prevent securities from trading outside predefined ranges of price/percentage change. Any change above or below these predefined bands within a five-minute period creates a five-minute trading stop.

This only happens within a certain price range within 15 seconds.

These types of stops are less common than many traders are aware of. However, such a stop became possible in 2013, although controversial.

These stops were particularly curious because yesterday many limit orders on GME came through after the stop at 420.69. These show that some errors occurred both in CBOE, OPRA and in data exchanges.

For more on halts, stay tuned for the next educational series from unusualwhales.com. In the meantime, check here.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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