Halts, Gaps and Stop Losses Quiz

A stop needs a trade to trigger it and more trades to fill it. Test 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 actually 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 starts, 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

3The listing exchange halts a stock you own, and the reason code says 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. If the stop fills near the reopen, roughly what do you lose?

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

5You have a stop-limit to sell with a stop at 25.00 and a limit at 24.70. Bad news comes out overnight, and 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. How big is the loss in R?

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

7If the stock trades through your stop price during after-hours trading, will a standard sell stop order trigger?

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's 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 does a resting stop order beat 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, and 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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