What Is a Circuit Breaker In The Stock Market

A circuit breaker is a kind of regulatory measure that is used to temporarily halt trading on an exchange. Circuit breakers are in place to curb panic-selling. They are used both in broad market indexes, such as the S&P 500, as well as for individual securities. They exist in the United States, as well as in other countries around the world.

Circuit breakers function automatically by stopping trading when prices hit predefined levels. For example, for the S&P 500, a circuit breaker may be triggered after a 7%, 13%, and 20% intraday move.


  • Circuit breakers are temporary measures that halt trading; they are intended to curb panic-selling on U.S. stock exchanges.
  • Currently, U.S. regulations have three levels of a circuit breaker, set to halt trading when the S&P 500 Index drops 7%, 13%, and 20%.
  • The current system of circuit breakers has been revised several times based on feedback from past crises, including the 1987 Black Monday Crash.

How Circuit Breakers Work

Regulators put the first circuit breakers into place following the market crash that occurred on October 19, 1987. On this day, the Dow Jones Industrial Average (DJIA) shed 508 points–falling by approximately 22.6%–in a single day.1 The crash, which began in Hong Kong and soon impacted markets worldwide, came to be known as Black Monday.

A second incident, the so-called flash crash of May 6, 2010, saw the DJIA drop almost 1,000 points (over 9%) in just ten minutes. Prices mostly recovered by the market close, but the failure of the post-1987 circuit breakers to halt the crash caused the regulators to update the circuit breaker system at that time.

Today, the circuit breaker system applies to both individual securities and market indexes. For example, since February 2013, there have been market-wide circuit breakers that respond to single-day declines in the S&P 500 index. When the index falls by 7% below its previous close, it is considered a Level 1 decline. A Level 2 decline refers to a drop of 13%. Finally, a Level 3 decline refers to a drop of 20%.

Some analysts believe that circuit breakers are disruptive and keep the market artificially volatile because they cause orders to build at the limit level and decrease liquidity. Critics of circuit breakers argue that if the market were allowed to move freely, without any halts, they would settle into a more consistent equilibrium.

A recent example of circuit breaker activity occurred on March 9, 2020, and again on March 12, 2020. On both of these days, circuit breakers were triggered at the New York Stock Exchange (NYSE). In one instance, the DJIA fell more than 7% at the open, likely in response to the severity of the growing global coronavirus pandemic.

For individual securities, circuit breakers can be triggered if the price is increasing or decreasing. By contrast, circuit breakers that relate to broad market indices are only triggered based on downward price movements.

Special Considerations

Level 1 or 2 circuit breakers halt trading on all exchanges for 15 minutes, unless they are triggered at or after 3:25 PM (in which case trading is allowed to continue). Level 3 circuit breakers halt trading for the remainder of the trading day (from 9:30 A.M. to 4:00 P.M.).

In addition to these market-level circuit breakers, there are also circuit breakers for individual securities. Unlike their market-wide counterparts, these individual circuit breakers are triggered whether the price moves up or down. Importantly, exchange-traded funds (ETFs) are treated as an “individual security” under the circuit breaker system, even though they represent portfolios of several securities.

The following table outlines the acceptable trading ranges used to regulate individual securities within the current system of circuit breakers:

Key Parameters of the Circuit Breaker System
Acceptable up-or-down trading range (9:45 am-3:35 pm)Acceptable up-or-down trading range (9:30-9:45 am and 3:35-4:00 pm)Security price, listing
5%10%Tier 1 National Market System (NMS) securities: S&P 500- and Russell 1000- listed stocks, some exchange-traded products; price greater than $3.00 (price > $3.00)
10%20%Tier 2 NMS securities: other stocks priced over $3.00 (p > $3.00)
20%40%Other stocks priced greater than or equal to $0.75 and less than $3.00 ( $0.75 ≤ p ≤ $3.00)
Lesser of 75% or $0.15Lesser of 150% (upper limit only) or $0.30Other stocks priced less than $0.75 (p < $0.75)

Circuit breakers are brought into effect if trading occurs outside of these predefined parameters.

If trading outside of these bands persists for 15 seconds, trading is halted for five minutes. The reference price is calculated using the average price over the previous five minutes; the maximum allowed pause is 10 minutes.

To accommodate the higher volumes generally associated with the opening and closing periods of the trading day, the bands are doubled during those periods (9:30 A.M. to 9:45 A.M. and 3:35 P.M. to 4:00 P.M., respectively).

Since October 2013, the Securities and Exchange Commission (SEC) has used a “limit-up limit-down” (LULD) mechanism to determine the thresholds for acceptable trading. In this framework, halts are triggered by up-or-down moves outside of certain bands, determined based on the security’s price and listing.

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Fintech Business Technology

Fintech is a portmanteau of the terms “finance” and “technology” and is one of many types of business technology to enhance or automate financial services and processes. The term is a broad and rapidly growing industry serving both consumers and businesses.

Fintech Examples

So how is fintech being used in 2020, and what are some of its traditional uses? 

1. Crowdfunding Platforms

Companies like Kickstarter, Patreon, GoFundMe and others illustrate the range of fintech outside of traditional banking. 

Crowdfunding platforms allow internet and app users to send or receive money from others on the platform and have allowed individuals or businesses to pool funding from a variety of sources all in the same place. 

Instead of having to go to a traditional bank for a loan, it is now possible to go straight to investors for support of a project or company. And while their applications range from family and friends funding to fan and patron funding, the number of crowdfunding platforms have multiplied over the years. 

2. Blockchain and Cryptocurrency

Cryptocurrency and blockchain are hallmark examples of fintech in action. 

Cryptocurrency exchanges like Coinbase and Gemini connect users to buying or selling cryptocurrencies like bitcoin or litecoin. 

But in addition to crypto, blockchain services like BlockVerify help reduce fraud by keeping provenance data on the blockchain. And while cryptocurrency and even blockchain may be somewhat controversial uses of fintech, they have certainly taken parts of the investment world by storm in recent years. 

3. Mobile Payments

It seems as though everyone with a smartphone uses some form of mobile payments. In fact, according to Statista data, the global mobile payment market is on track to surpass $1 trillion in 2019. 

Using increasingly sophisticated technology, services have emerged that allow consumers to exchange money and payments online or on mobile devices – including popular payment app Venmo. 

Apple and Alibaba got in on the mobile payment business with Apple Pay or Alipay. 

4. Insurance

Fintech has even disrupted the insurance industry. In fact, insurtech (as it’s been so-called) has come to include everything from car insurance to home insurance and data protection.

Additionally, insurtech startups are increasingly attracting funding, with insurance startups.

5. Robo-Advising and Stock-Trading Apps

Robo-advising has disrupted the asset management sector by providing algorithm-based asset recommendations and portfolio management that have increased efficiency and lowered costs.

Since the rise of more advanced technology that can analyze various portfolio options 24/7, financial institutions have adapted to offer online robo-advising services.

Additionally, other popular robo-advising services include Betterment and Ellevest. 

Perhaps one of the more popular and big innovations in the fintech space has been the development of stock-trading apps. When once investors had to go directly to a stock exchange like the NYSE or Nasdaq, now, investors can buy and sell stocks at the tap of a finger on their mobile device.

And with inexpensive and low-minimum apps like Robinhood or Acorns, investing from anywhere with any budget has never been easier.

6. Budgeting Apps

One of the most common uses of fintech in 2019 is budgeting apps for consumers, which have grown exponentially in popularity over the years.

Before, consumers had to create their own budgets, gather checks, or navigate excel spreadsheets to keep track of their finances. But after the fintech revolution prompted the development of financial services apps, consumers can easily and efficiently keep track of their income, expenses and other budgeting tools that have revolutionized the way consumers think about their money.

Budgeting apps like Intuit’s help consumers track their income, monthly payments, expenditures and more – all on their mobile device.

6. POS – Point Of Sale Solutions

POS Solutions are popping up on the radar even for Restaurant POS solutions like Restaurant Loop

HTML5 and CSS3 Usage

HTML5 is used for a variety of things on the web like HTML5 games, interactive banner ads, web pages, web applications. freeigames.com is a website dedicated to free games on the web and is an example of progressive web application or PWA

How a Transmission Works

A planetary gear-set has 2 inputs and 1 output

If you properly understand working of a planetary gear-set then you can easily understand automatic transmissions

4 Stages Of Cancer

There are four main categories used with diagnosing cancer. They are divided into grades from 0-4. Also they are usually seen written in the roman numeral format.

  • Stage 0 (Zero) cancer is used to diagnose cells that are mainly referred to as precancerous cells. Stage 0 cancer cells are completely contained in its originating area and have not spread.
  • Stage 1 (One) cancer is used when the cancerous cells are still contained within its originating area. The cancerous cells show no significant growth within the area or organ.
  • Stage 2 (Two) cancer is used when the cells are usually still contained in the originating area. At this point the cancerous growth has grown and is larger in its originating area.
  • Stage 3 (Three) cancer is used when the cancerous growth has grown quite large and may have depth within the originating tissue of which it was found. At this point the cancer may have moved into other parts of nearby tissues. However, the cancer may also possibly have spread to lymph nodes but not to other parts of the body.
  • Stage 4 (Four) cancer is used when the cancerous growth has become advanced and spread to other parts of the body and or organs. The term usually used in this case is metastatic cancer. Source: https://www.medicalbin.com/blog/waiting-room/what-are-the-four-stages-of-cancer/

Coronavirus 2020 Outbreak

The much publicized human coronavirus discovered in 2003, SARS-CoV , which causes severe acute respiratory syndrome (SARS), has a unique pathogenesis because it causes both upper and lower respiratory tract infections . (en.wikipedia.org)

The World Health Organisation has declared a global public health emergency over the virus which has killed more than 1,000 people. (scmp.com)

Doctors say one of the best way to protect yourself against the new strain of coronavirus is to use the same measures to guard against the common cold or flu maintain good hygiene by washing your hands thoroughly and wearing a face mask when going out in public. (scmp.com)

Iran’s state media reported on Saturday that five members of Parliament had tested positive, adding to the coronavirus’s reach into the top tiers of the country’s politicians. (nytimes.com)

Over the past week, Iran reported that seven government officials, including one of the country’s vice presidents, were infected. (nytimes.com)

Human coronaviruses (en.wikipedia.org)
Over 8,000 people were infected, about 10% of whom died. (en.wikipedia.org)

As of December 2019, 2,468 cases of MERS-CoV infection had been confirmed by laboratory tests, 851 of which were fatal, a mortality rate of approximately 34.5%. (en.wikipedia.org)

Human coronaviruses (en.wikipedia.org)

How Much Should You Spend on SEO Services? | Search Engine Watch


SEO – Where Technical and Copywriting meet!

Typical SEO Costs:

  • Hourly consulting rate: SEO consultants, whether individuals or agencies, usually charge between $100 and $300 per hour.
  • Monthly retainer: $750-$5,000 per month. Within this range, the amount that a client pays depends on the size of their business and the extent of services provided by the agency. On the lower end of this spectrum are small SEO agencies that offer a limited range of services. On the upper range are businesses with greater needs working with full-service SEO agencies. Most businesses pay between $2,500 and $5,000 for a monthly retainer for a monthly retainer.
  • Contract services at fixed prices: price variable. Businesses that are just testing the waters in SEO usually choose a contract service as an entry point. Typical contract services include things like SEO copywriting ($0.15-$0.50/word), site content audit ($500-$7,500), link profile audit ($500-$7,500), and social media site setup ($500-$3,000).
  • Project-based pricing: price variable. Since there are a variety of projects, there is a wide range of prices. Most projects cost from $1,000 to $30,000.

Things You Should Be Suspicious of:

  1. Guarantees.
  2. Instant results.
  3. #1 spot on Google.
  4. Costs lower than $750/month.
  5. Shady link building services. *You risk being blacklisted from Google and other Search Engines!

Source: How Much Should You Spend on SEO Services? | Search Engine Watch

What is an API? – How to Leverage an API for Conferencing | HowStuffWorks

An application-programming interface (API) is a set of programming instructions and standards for accessing a Web-based software application or Web tool. A software company releases its API to the public so that other software developers can design products that are powered by its service.

For example, Amazon.com released its API so that Web site developers could more easily access Amazon’s product information. Using the Amazon API, a third party Web site can post direct links to Amazon products with updated prices and an option to “buy now.”
Source: What is an API? – How to Leverage an API for Conferencing | HowStuffWorks

Economists Say Election Uncertainty Is Slowing US Job Growth – VOA

Economists say uncertainty about the outcome of the upcoming presidential election may be hurting the U.S. economy. With the election just two months away, analysts warn that some employers may be more reluctant to hire until they have a clearer picture of the country’s economic direction.

New employment numbers suggest hiring momentum slowed in August, with employers adding only 155,000 workers to their payrolls. That’s a far cry from the previous two months, which saw an average gain of about 270,000 new jobs.
Source: Economists Say Election Uncertainty Is Slowing US Job Growth-VOA

Official Google Blog: Transparency Report: Protecting emails as they travel across the web

When you mail a letter to your friend, you hope she’ll be the only person who reads it. But a lot could happen to that letter on its way from you to her, and prying eyes might try to take a look. That’s why we send important messages in sealed envelopes, rather than on postcards.

Email works in a similar way. Emails that are encrypted as they’re routed from sender to receiver are like sealed envelopes, and less vulnerable to snooping—whether by bad actors or through government surveillance—than postcards.

Source: Official Google Blog: Transparency Report: Protecting emails as they travel across the web

What to Consider When You Finance a Home | Investopedia

The first thing you need to determine is how much you can spend on your new home. The amount that you can borrow will generally depend on four main factors:

  1. The size of your down payment
  2. Your credit score
  3. Your debt-to-income ratio (DTI) and
  4. Your monthly maintenance expenses

All of these factors will impact the interest rate you can obtain from your lender and the size of your monthly payment, which should correspond with your overall cash flow so that you can continue to live without feeling like you are chained to your new home (house rich and cash poor).

Source: What to Consider When You Finance a Home | Investopedia

USA Finishes First in Semifinal Round of 2018 World Cup Qualifying Group C with 4-0 Win vs. Trinidad & Tobago – U.S. Soccer

The U.S. Men’s National Team used a brace from Jozy Altidore and goals from Sacha Kljestan and Paul Arriola to earn a hard-fought 4-0 victory against Trinidad & Tobago Tuesday night. The win propelled the MNT to the top spot in Group C of Semifinal Round CONCACAF World Cup Qualifying, as well as a berth in the Final Round beginning in November.
Source: USA Finishes First in Semifinal Round of 2018 World Cup Qualifying Group C with 4-0 Win vs. Trinidad & Tobago – U.S. Soccer

What’s Next for Entertainment: Three Predictions From Google Australia’s Head of Marketing – Think with Google

When Aisling Finch, Google Australia and New Zealand’s head of marketing, thinks about the future of entertainment, she sees consumers, video, and reality itself coming together in exciting ways. Here are her three predictions on where it’s all headed (and yes, thoughts on VR and AR included).

Source: What’s Next for Entertainment: Three Predictions From Google Australia’s Head of Marketing – Think with Google

Reward-related brain circuit is vital for sleep, researchers discover – Medical News Today

Problems sleeping? You’re not alone; every year, around 40 million Americans experience insomnia, with some cases warranting drug treatment. But new research may pave the way to a more effective treatment option; in a mouse study, researchers found that a brain circuit involved in reward response is also crucial for sleep.

Researchers find a brain circuit involved in reward response – the ventral segmental area – also plays a key role in sleep preparation.
Source: Reward-related brain circuit is vital for sleep, researchers discover – Medical News Today

ITT Tech Closes Its Doors | US News

ITT Technical Institute campuses cease operations, leaving tens of thousands of students in the lurch. ITT Technical Institute campuses, the for-profit giant that enrolls about 40,000 students,announced Tuesday morning that it is closing permanently.

The closure comes not even two weeks after the Education Department slapped it with a series of sanctions, including one that barred the for-profit company from admitting students who rely on federal aid to cover tuition.
Source: ITT Tech Closes Its Doors | US News