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Circuit Breaker

Trading halt triggered when an index or stock moves beyond predefined thresholds.

In depth

US: S&P 500 levels at -7%, -13%, -20% trigger trading pauses. Individual stock circuit breakers (LULD) prevent flash crashes. India has 10%, 15%, 20% thresholds. Designed to give markets time to digest information during extreme moves.

Frequently asked about Circuit Breaker

What is Circuit Breaker?

Trading halt triggered when an index or stock moves beyond predefined thresholds. US: S&P 500 levels at -7%, -13%, -20% trigger trading pauses. Individual stock circuit breakers (LULD) prevent flash crashes. India has 10%, 15%, 20% thresholds. Designed to give markets time to digest information during extreme moves.

Why does Circuit Breaker matter for investors?

In markets, Circuit Breaker is one of the building blocks investors use to compare opportunities and assess risk. Understanding it helps you read research notes, earnings reports, and market commentary without getting lost in jargon.

How is Circuit Breaker used in practice?

US: S&P 500 levels at -7%, -13%, -20% trigger trading pauses. Individual stock circuit breakers (LULD) prevent flash crashes.

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