What if your trading position is halted? What happens if your trading position is halted?
There are a few possible outcomes for this scenario.
First, when a stock is halted – this means trading that market will be suspended.
You will not be able to open, adjust or close your position during that time.
The best-case scenario is when the position will just be removed from your account and you will lose whatever the margin (deposit) you put into the trade.
The worst-case scenario is, if the market resumes trading but the share price drops over 99%, the next day.
Either, the company will release news that it’s currently undergoing facing financial difficulties or fraud.
Or it has failed to meet the regulatory requirements.
This can result in the stock heading to zero and being delisted from the main index.
That’s why it’s important to only look to trade markets that are quality blue-chips, highly credible stocks with a great track record.
This way you’ll have a much higher chance at picking stocks that are NOT susceptible to heading to zero.
But to be safe, you’ll need to get more accurate information about the specific procedures and outcomes of your trade.
It's crucial to consult your trading platform, CFD provider, or your broker directly.
They will give you more details about what happened to the stock, the market regulations, and the specific terms and conditions that apply to your situation.
If you have any more questions I'll be happy to help where I can.
Comment your question below.
