Circuit Breakers
Price Circuit Breakers
Regulatory CompliancePrice bands set by exchanges (NSE/BSE) to halt trading during extreme volatility. Index-wide and stock-specific circuits exist.
Formula
Index circuits: 10%, 15%, 20% movement triggers halt
Why it matters
Prevents panic selling and manipulative trading. Gives market time to absorb information during extreme moves.
Indian example
Related terms
Learn the concept
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