RSS
Twitter
Facebook
LinkedIn
You Tube
Newsletter
Circuit Breakers
Posted By: TradersLog
A system of coordinated trading halts and/or price limits on equity markets and equity derivative markets designed to provide a cooling-off period and avert panic selling during large, intraday market declines. The first known use of the term circuit breaker in this context was in the Report of the Presidential Task Force on Market Mechanisms (January 1988), which recommended that circuit breakers be adopted following the market break of October 1987. Also referred to as a “collar.”
Leave a Reply
By submitting a comment here you grant Traders Log a perpetual license to reproduce your words and name/web site in attribution. Inappropriate or irrelevant comments will be removed at an admin's discretion.