Halts, Gaps and Stop Losses Quiz

A stop needs trades to trigger it and more trades to fill it. These questions check what happens to your orders when trading pauses, halts or opens far from the last close.

AI-assisted, reviewed by John James →

Questions: 10
Level: Beginner
Time: 5 min

Question 1 of 10

1Under the US limit up-limit down mechanism, what sets off a trading pause in a single stock?

A The stock falls a fixed percentage below the prior close B The stock's volume doubles within a five-minute stretch C The stock cannot trade within its price band for 15 seconds D The stock prints one trade at the edge of its price band

2Once a limit up-limit down pause begins, what usually happens next?

A Trading stops for about five minutes, then a reopening auction sets the price B Trading stops until the next session, then opens at the prior close C Trading stops for 15 seconds, then resumes at the band price D Trading stops for about thirty minutes, then a market maker sets the price

3A stock you own is halted by its listing exchange with a reason code saying news is pending. How long will the halt last?

A Exactly five minutes, like every other halt B Until the end of the session, in every case C Fifteen seconds after the news is published D There is no fixed clock, and it can run much longer

4You hold 500 shares bought at 8.00 with a stop at 7.40. The stock is halted at 7.90 pending news and reopens at 6.10. Roughly what do you lose if the stop fills near the reopen?

A About 300 B About 950 C About 50 D About 1,200

5You hold a stop-limit to sell with a stop at 25.00 and a limit at 24.70. After bad news overnight the stock opens at 21.00 and keeps sliding. What happens to your order?

A It fills at 25.00, the stop price B It fills near 21.00 as a market order C It triggers but sits unfilled unless price climbs back to 24.70 D It is canceled automatically because of the gap

6You buy 300 shares at 40.00 with a stop-market at 38.00. The stock gaps down and your stop fills at 33.00. What is the loss measured in R?

A 3.5R B 2.5R C 7R D 1R

7Will a standard sell stop order trigger if the stock trades through your stop price in after-hours trading?

A Yes, every stop order triggers on any after-hours trade B At many brokers no, though some offer extended-hours stop features C No, SEC rules bar every type of stop from extended sessions D Only if the after-hours trade is at least 5% past the stop

8You hold 400 shares bought at 15.00 with a regular-session-only stop at 14.00. After hours it trades near 12.50. It opens at 13.00, and the stop fills at 12.95. What is your loss?

A 400, because the stop caps the loss at 14.00 B 1,000, from a fill at the after-hours price C 800, from a fill at exactly the 13.00 open D 820, from the 12.95 fill after the open

9In a liquid stock, why is a resting stop order better than a stop you keep in your head?

A A resting stop always fills at exactly its stop price B A resting stop keeps working while the stock is halted C A mental stop needs you present, watching and willing to sell at a loss D A mental stop cannot be placed at a round number

10You hold 2,000 shares at 0.75. The company does a 1-for-10 reverse split. Ignoring any market move, what do you hold right after it takes effect?

A 200 shares at about 7.50, worth the same 1,500 B 2,000 shares at about 7.50, worth 15,000 C 200 shares at about 0.75, worth 150 D 20,000 shares at about 0.075, worth 1,500

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