Tagged "volatility"

Circuit Breakers: The Pause a Market Forces on Itself

A circuit breaker doesn't lower a falling price — it stops trading from continuing while the price is still falling.

A circuit breaker doesn't lower a falling price — it stops trading from continuing while the price is still falling. India halts the entire market the moment its own index breaks down. The US built that same idea in 1988, then discovered forty years later that a single runaway stock needed a completely different version of it. Two mechanisms, two different things they're built to protect, with the crash that proved each one was necessary.

Surya · 11 min read