Investment Glossary · Quick read · No ads
Circuit Breaker
A mechanism used by exchanges to temporarily halt trading if prices move beyond predefined thresholds, helping to curb panic selling and extreme volatility.
What is Circuit Breaker?
A mechanism used by exchanges to temporarily halt trading if prices move beyond predefined thresholds, helping to curb panic selling and extreme volatility.
About this page. Written by Associate Professor Charles Lo, CPA, PhD. Checked against reliable sources before publication. No ads and no paywall. Editorial standards · How we fact check · Corrections log · Report an error
Educational information only. Nothing on this page is personal financial, tax or legal advice. Investing involves risk, including the possible loss of principal.