circuit breaker

An automatic pause button: if prices fall too fast, trading stops for a while so people can calm down.

The fuller meaning

An exchange rule that pauses or halts trading after an extreme move. US stocks pause for 15 minutes after a 7% or 13% fall in the S&P 500 before 15:25 New York time and halt for the day at 20%; India can halt on 10%, 15% or 20% index moves. Spot crypto and forex have no market-wide pause.

circuit breaker, also called market-wide circuit breaker.

circuit breaker

The fuller meaning

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