Trump concept stock$DIGITAL WORLD ACQUISITION CORP (DWAC.US) $And$Phunware, Inc. (PHUN.US) $Trading in US stocks triggers a circuit break. what is a circuit breaker and what are the rules of a circuit breaker in US stocks?
Circuit breaker mechanism (Circuit Breaker), also known as automatic suspension mechanism, refers to the suspension of trading measures taken by the exchange to control risk when the volatility of the stock index reaches the prescribed circuit break point.
The circuit breaker is divided into market breaker and individual stock breaker. This paper mainly introduces the individual stock breaker mechanism (Limit Up Limit Down Plan).
According to the latest rules of the Securities and Exchange Commission (SEC), if the trading price of an individual stock does not return to the prescribed "price range" within 15 seconds, trading will be suspended for five minutes (depending on the type of stock, the price fluctuation can be 5%, 10% or 20%). If the trading price of the stock does not return to the prescribed "price range" within 15 seconds, the stock will be suspended for 5 minutes (the maximum suspension time is 10 minutes).
For stocks with more than $3 in the first tier stocks (S & P 1000 and 430 exchange-traded products), the "price range" stipulated by the SEC is up or down by 5%. With the exception of tier 1 stocks trading at more than $3 and other illiquid stocks trading at less than $3, the "price range" is widened to 10% and 20%.
With the help of the circuit breaker mechanism, the US Securities Regulatory Commission can effectively control the abnormal rise and fall of the market and individual stocks, and play a stable role in the trend of the market and individual stocks.
Reference link:Limit Up Limit Down Plan
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难怪周五一会儿停一会儿开的,比你比特币还波动大
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