What's the economic justification for halting trading one something?
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LUDP Volatility Halts (one of many types, but the one specifically triggered on GME) are an automatic suspension of trading based on the rolling 5-minute price of a stock. The reason for the halt is that extreme volatility usually is the result of a significant order imbalance.
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They're important because massive order imbalances can cause flash reactions that do not represent the actual expected market price of a security if there was adequate liquidity from market makers. Honestly a lot more boring of a function than everyone seems to wish it was.
End of conversation
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