Volatility halts
Exchanges pause trading when price moves outside a defined band in a short window. The pause is meant to let the order book rebuild.
News and regulatory halts
A halt can also be called for pending news or a regulatory concern. These can last far longer, and the reopen price may be a long way from the last print.
Why the reopen matters most
Positions cannot be managed while halted. Anyone holding through a halt accepts whatever the resumption price turns out to be, which is why size discipline matters before a halt, not after.
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