Definition of Circuit breaker:
An automatic device for stopping the flow of current in an electric circuit as a safety measure.
Circuit breakers are regulatory measures to temporarily halt in trading on an exchange, which are in place to curb panic-selling. They apply both to broad market indices such as the S&P 500 as well as to individual securities and exist in the United States as well as in other countries.
Circuit breakers function automatically stopping trading when prices hit predefined levels, such as a 7%, 13%, and 20% intraday move for the S&P 500. Circuit breakers a form of market curbs.
General: Protective electrical switch that turns itself off (trips) to interrupt flow of electricity, if the current exceeds a preset limit. When the current returns to normal, the circuit breaker is either manually or automatically reset for reuse.
Program trading: Measure employed by modern commodity and stock exchanges (which use computerized trading systems) to temporarily halt automated trading when certain conditions (such as a precipitous fall in market prices) occur. Instituted after the third of Black Mondays (October 27, 1997), their objective is to prevent a melt down (free-fall) of the market prices.
Synonyms of Circuit breaker
Button, Handle, Lever, Key, Control, Controller, Disc, Dial, Joystick
How to use Circuit breaker in a sentence?
- Currently, U.S. regulations have three levels of circuit breaker, set to halt trading when the S&P 500 Index drops 7%, 13%, and 20%.
- The earthquake early this morning cause a small in town. The only thing that was damage was the circuit breaker .
- The circuit breaker was switched off for some strange reason so all we had to do was flip it back to get power.
- If you have a lot of electrical equipment you must have a good circuit breaker so that it all doesnt fry in an emergency.
- The system of circuit breakers has been revised several times based on feedback from past crises, including the 1987 Black Monday Crash.
- This circuit-breaker is suitable for plants in which smooth DC fault currents can occur.
- Circuit breakers are temporary measures that halt trading, which are used to curb panic-selling on U.S. stock exchanges.
Meaning of Circuit breaker & Circuit breaker Definition