medium · Market Microstructure mmf-core
A Tier 1 stock has a reference price of $100.00. The Limit Up-Limit Down (LULD) bands are currently 5%. A large sell order pushes the price to $94.50.
What is the immediate result?
- The stock enters a 15-second 'limit state'.
- All trades at $94.50 are canceled.
- A 15-minute Level 1 halt is triggered.
- Trading is immediately halted for 5 minutes.
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