Update 25 Feb | Stake

In light of today’s activity in GameStop (GME), we are notifying our traders to be prepared for another volatile end to the week in certain symbols. While GME has seen the greatest market moves, showing over a 150% increase during normal and after-hours trading sessions on greater than 2 times volume, other symbols, such as Tilray (TLRY) are showing signs of increased activity on large volume and could experience significant moves in each direction, as well.

We ask that customers please prepare by reading the implications this increased demand may have on order executions within the trading ecosystem.

Trading Halts

With an uptick in volatility surrounding names like GameStop ($GME) and Tilray ($TLRY) several exchange-mandated trading halts may occur to these stocks.

This may occur due to the following:

  • A 20% movement inside the first 15 minutes or last 25 minutes of the session within a 5 minute period.
  • A 10% movement between these times within a 5 minute period. It is not uncommon for stocks to gap across price ranges, especially between market close and the following market open.

Each halt lasts for 5 minutes. More information can be found here.

What Happens to Order During Halts

An order placed before a trading halt may be held and executed once trading recommences.

An order for a full share placed during a trading halt could be executed once trading recommences. Orders for fractional shares can be subject to rejection by the exchange and need to be placed again once trading recommences.

For more information on circuit breakers read here.

Manage your risk during volatility

Such volatility can bring some particular risks to investors. We have prepared the following piece, to bring your attention to ‘gap risk’ and ‘liquidity risk’, two factors to consider while managing your portfolio during such periods.