stocks

What Is Circuit Breaker In Stock Market – Free PDF Download

 

WHAT IS CIRCUIT BREAKER?

  • An automatic device for stopping the flow of current in an electric circuit as a safety measure.

WHAT IS CIRCUIT BREAKER IN STOCK MARKET?

  • Circuit breakers are pre-defined values in percentage terms, which trigger an automatic check when there is a runaway move in stock market on either direction.
  • Circuit breakers are employed for both stocks and indices.

2 things that happen during Circuit Breaker:-

  1. Halting of trade in a security or index for a certain period.
  2. Halting of trade in a security or index for the entire trading day.

KEY FACTORS BEHIND THE FRESH MARKET SELLOFF

  • India under lockdown,companies announce shutdown.
  • Delays in $1 trillion US stimulus.
  • Rupee hits 76 a dollar level, FII selling intensify.
  • India has reached a crucial phase where it can either go China or Italy’s way.

 

 

 

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