Results for “Circuit Breaker”
3 terms
Circuit Breaker
Orders, Execution & Market Structure
%
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
Market Crash
Economy, Macro & Market Cycles
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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
Price Band
Orders, Execution & Market Structure
%
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 %)