When is an Avalanche Stop Trading triggered?

When is an Avalanche Stop Trading triggered?

• A. When the next price compared to a transaction is within a certain time period and is outside Stop Trading Range
• B. When the next price compared to a transaction is outside Stop Trading Range
• C. When there is no quote on either side for a period
• D. When the reference price updates during the period

Answer: (A)

Avalanche Stop Trading is triggered by a rapid price move that breaches the protective band within a defined time window after a trade. The mechanism looks at the next price after a transaction and requires two things: that this price is observed within the specified look‑back period, and that it lies outside the Stop Trading Range. Only when both conditions occur is trading halted. The time window matters because it filters out isolated outliers and targets sharp moves happening quickly, rather than normal fluctuations. If there’s no price within that period or if the move happens outside the window, the halt isn’t triggered. Updates to the reference price during the period can adjust the range but aren’t themselves the trigger.

Avalanche Stop Trading is triggered by a rapid price move that breaches the protective band within a defined time window after a trade. The mechanism looks at the next price after a transaction and requires two things: that this price is observed within the specified look‑back period, and that it lies outside the Stop Trading Range. Only when both conditions occur is trading halted. The time window matters because it filters out isolated outliers and targets sharp moves happening quickly, rather than normal fluctuations. If there’s no price within that period or if the move happens outside the window, the halt isn’t triggered. Updates to the reference price during the period can adjust the range but aren’t themselves the trigger.