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Results for “Circuit Breaker”

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Orders, Execution & Market Structure

Circuit Breaker

An automatic trading halt triggered when an index or a security moves beyond a preset percentage from a reference price.

Trigger: index movement of 10%, 15% or 20% from the previous close, with halt duration depending on the level and the time of day %
Economy, Macro & Market Cycles

Market Crash

A sudden, severe fall in prices across a market, typically over days rather than months.

Test: a broad index falls sharply within a very short period, usually accompanied by a spike in volatility and volume %
Orders, Execution & Market Structure

Price Band

The maximum percentage a security may move from its previous close in a session before orders outside the range are rejected.

Upper Band = Previous Close x (1 + Band %); Lower Band = Previous Close x (1 - Band %) %