Circuit breakers are measures implemented by exchanges when they considerprice movements to be overly volatile. They can take the form of a trading suspension or limiting buying and selling of securities within a specific price range.
Purpose:
Circuit breakers can be triggered tocurb in panic-selling ormanic-buying. Applicable assets:
The circuit breaker system applies to bothindividual securities and market indexes. As a result, it applies to options market as well -- if the stock market triggers a circuit breaker, the affected listedoptionsmarkets will also halt trading. How circuit breakers work in different markets
Jurisdictions and stock exchanges have their own rules for what circuit breakers entail, when do they kick in, and for how long they are in place.
Machiavellis3rdEye
:
What do we have “various exchanges?” And why do they get to set their own individual rules concerning these momentum breaking, make-sure-we-can-hit-the-stop-button unfair tools they use against us? I’m asking you SEC, you should all be replaced immediately. And burned at public viewing ...very slowly.
I broker heart : appropriate term
David W Clark : Good information on circuit breakers and how they work for me to have a better understanding.
Alex Loo : Good to know.
Machiavellis3rdEye : What do we have “various exchanges?” And why do they get to set their own individual rules concerning these momentum breaking, make-sure-we-can-hit-the-stop-button unfair tools they use against us? I’m asking you SEC, you should all be replaced immediately. And burned at public viewing ...very slowly.
Machiavellis3rdEye : Define jurisdictions please Moo Moo.
MiMoo : Thanks for sharing
Diamond1228 : ok
102751329 : nice to know
win 11118 : Nice
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