Page 27 - Futures Money Machine-Study Session #3
P. 27
Understanding Futures
“Limit Moves” vs. “Circuit Breakers”…
“Circuit Breakers”, on the other hand, are a market safety feature and
temporarily stop trading when there is a computer-induced plummet in
prices. This occurs when the market has fallen by a certain percentage
point set by the exchange.
The major difference between the devices is that “circuit breakers”
would be used to stop trading across the whole exchange—while “limit
up”, “limit down” are confined to futures contracts and happen quite
often during a trading day.
