What is circuit breaker?Circuit Breaker

When the market index falls by a set amount within a day, the whole market halts for a while, giving investors time to calm down and absorb the news (for example the 7%, 13% and 20% levels in US stocks).

Learn “circuit breaker” in an animated lesson

US Stock Rules
Circuit Breakers and LULD
Individual US stocks have no daily price limits, but a 7%, 13% or 20% drop in the broad market triggers a circuit breaker, and a stock that breaks out of its LULD band is paused for a few minutes.

Related terms

price limit
volatility interruption
Limit Up–Limit Down (LULD)

See how “circuit breaker” works for yourself with an animation you can drag and play.

Go to “Circuit Breakers and LULD”