CIRCUIT BREAKERS

circuit breakers: translation

Measures instituted by exchanges to stop trading temporarily when the market has fallen by a certain percentage in a specified period. They are intended to prevent a market free fall by permitting buy and sell orders to rebalance. Bloomberg Financial Dictionary

   Breaks in trading, imposed by exchanges, when prices have fallen by a certain percentage. Circuit breakers are designed to restrict panic selling.

   ► See also Limit Up/Limit Down.