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Trades below 996 busted



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I have a question that could be considered a newbie question. When the
exchange decides to "bust" all trades below 996, what exactly does that
mean? Does it mean all trades below 996 will now have a price of 996, or
does it mean it's as if the trades never happened. What if you were able to
get long at, say, 994 and then you sold it later at 1000. Does that mean you
never bought it and this morning you are short at 1000 as it gaps to 1009?