Market
What is circuit breaker?
An automatic pause in trading when prices move too far, too fast.
Explained in more detail
India has market wide circuit breakers at 10%, 15% and 20% moves in the Nifty 50 or Sensex, in either direction. Individual stocks also have their own price bands. The purpose is to slow a panic down, not to prevent losses.
An example
For instanceThe market wide breaker was last triggered on 13 March 2020.
Why this matters to you
You will meet this word in broker apps, company results and market news. Knowing what it means is not the goal on its own. The goal is being able to judge whether a number is good or bad for the investment you are actually holding.
On AlphaVik, any time circuit breaker appears in a view or a lesson, you can hover or tap the word and this explanation comes with it. You never have to leave the page to look something up.