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Username: LuckyMan Rating:  Asked to: Anton Luyten Date Created: 08 Jan 2016 |
| Category | 40 |
| Tag | forex-market |
| Question | What does circuit breaker mean? |
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Hello LuckyMan, Refers to any of the measures used by stock exchanges during large sell-offs to avert panic selling. After an index has fallen a certain percentage, the exchange might activate trading halts or restrictions on program trading. For example, if the Dow Jones Industrial Average falls by 10%, the NYSE might halt market trading for one hour. There are other circuit breakers for 20% and 30% falls. |
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