Market & Structure
Circuit Breaker
Trading Halt
Definition
Automatic trading pause when markets fall sharply
Explanation
Circuit breakers halt trading when major indices drop by set percentages (7%, 13%, 20% for S&P 500). They're designed to prevent panic selling and give investors time to assess the situation. They were famously triggered during the March 2020 COVID crash.
Example
S&P 500 drops 7% → Trading halts for 15 minutes