NEPSE had an unexpected trading halt, reminding us how complex trading can sometimes be.
There are various reasons why trading might stop suddenly. From issues with servers at brokers’ data centers to automatic circuit breakers that can close the entire stock exchange without much notice, it’s important to understand these situations to manage your risks with pending orders and avoid possible losses. Here’s a breakdown of how it all works.
Broker Data Center & Server Disruptions
Unexpected hardware problems or internet issues between brokers and NEPSE can lead to a trading halt. This helps to ensure that all traders have a fair chance.
Automated Circuit Breaker Limits
- ±4% Shift (1st Hour): Trading stops for 20 minutes.
- ±5% Shift (2nd Hour): Trading stops for 40 minutes.
- ±6% Shift (Anytime): The market closes for the entire day (Emergency Shutdown).