circuit breaker
/ˈsɜːrkɪt ˌbreɪkər/
a regulatory mechanism that temporarily halts trading when prices fall too sharply
circuit breaker in a sentence
“Circuit breakers triggered three times in a single week during the March 2020 crash.”
Origin of circuit breaker
From electrical circuit breakers that cut power to prevent overload
Related Words
bull market
a prolonged period of rising asset prices, typically defined as a 20% gain from recent lows
bear market
a prolonged decline in asset prices of 20% or more from recent highs
market capitalization
the total market value of a company's outstanding shares, calculated as share price times share count
liquidity
the ease with which an asset can be bought or sold without significantly affecting its price
volatility
the degree of variation in an asset's price over time, often measured as standard deviation of returns
bid-ask spread
the difference between the highest price a buyer will pay and the lowest price a seller will accept