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Cooling off period

Stock market ConvexityCopey

Circuit Breaker A system of coordinated trading halts on equities and equity derivative markets designed to provide a cooling off period during large intraday price movements.

 


If prices reach the upper or lower limit, trading is suspended for a period of time, referred to as the cooling off period, that may last anywhere from several minutes to the remainder of the trading day.

After the issuer files the registration statement with the SEC for review, the cooling off period begins.

A mechanism used to restrain the market when it gets overheated. The Exchange may relax the limit after a cooling off period of about half an hour.
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Circuit Breaker : A mechanism used to restrain the market when it gets overheated. The Exchange may relax the limit after a cooling off period of about half an hour.

See also: Cash, Market, Position, Stock, Period

Stock market ConvexityCopey

 
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