Market Basics
Circuit Breaker
A trading pause designed to slow extreme market moves.
Also called: trading halt rule
What it means
A circuit breaker is a rule that temporarily pauses trading when markets fall sharply or a single stock moves too fast in a short time. The idea is to give investors time to process information instead of reacting in panic.
Why it matters
It helps users understand why markets may temporarily halt during unusually severe volatility.

