Trading & Market Structure

Circuit Breaker

Definition

What is Circuit Breaker?

A rule that pauses or limits trading after unusually large price moves.

Example in practice

A broad market decline triggers a 15-minute circuit breaker.

Keep learning

The highest price a buyer is currently willing to pay for a security.

The lowest price a seller is currently willing to accept for a security.

The difference between the best available buying and selling prices.

An instruction to buy or sell immediately at the best available prices.

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