Circuit breakers explained - during a market crash, what calms down investors ?
What are circuit breakers?
Circuit breakers are measures implemented by exchanges when they consider price 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 to curb in panic-selling or manic-buying.
Applicable assets:
Applicable assets:
The circuit breaker system applies to both individual securities and market indexes. As a result, it applies to options market as well -- if the stock market triggers a circuit breaker, the affected listed options markets will also halt trading.
How circuit breakers work in different markets
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.
U.S. Stock Market
Asian Stock Markets
Source: CNBC, Investopedia
$S&P 500 Index(.SPX.US$ $Dow Jones Industrial Average(.DJI.US$ $Nasdaq Composite Index(.IXIC.US$ $NASDAQ 100 Index(.NDX.US$ $iShares NASDAQ 100 Index ETF(02834.HK$ $Hang Seng Index ETF(02833.HK$ $Hang Seng Index(800000.HK$ $SSE Composite Index(000001.SH$ $HSCEI ADR(.HCIADR.US$ $FTSE Singapore Straits Time Index(.STI.SG$
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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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
102237346 :