Financial

Circuit breakers

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Circuit breakers

Measures instituted by exchanges to stop trading temporarily when the market has fallen by a certain percentage in a specified period. They are intended to prevent a market free fall by permitting buy and sell orders to rebalance.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Circuit Breaker

On an exchange, a measure designed to prevent panic selling by stopping trading after a security or an index has fallen by a certain amount. For example, if the Dow Jones Industrial Average falls 10% in a trading day, the New York Stock Exchange suspends trade for at least one hour. A circuit breaker is intended to allow investors to determine whether a situation is really as bad as it looks. It is sometimes called a collar. See also: Suspended trading.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
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References in periodicals archive
Due to their wide applicability across the residential and commercial sectors, low voltage circuit breakers dominate the overall circuit-breaker market with the largest market revenue share.
The main challenge of this project for OEM partners is the development of DC circuit breakers with a new switching system capable of opening DC currents.
Ravi Bhandari, assistant manager, 6Wresearch, said: "Residential and power utilities are the key revenue generating segments in Saudi Arabian circuit breaker market due to high utilisation of low voltage and high voltage circuit breakers in these two sectors."
However, this does not mean fuses are inherently less safe than circuit breakers. In fact, fuses, when properly installed, are probably more reliable than breakers because they have a quicker response time when there is a power overload, and they are literally fail-safe when electrical overloads occur.
Until recently, a few alternative to the old electromechanical and magnetic circuit breakers existed.
Problem isolated to a circuit breaker that wasn't tripping the indicator button and was working as an auto-reset breaker.
* Monitoring of temperature inside the circuit breaker compartment and the auxiliary ?voltage
Circuit breakers are to be distinguished from other kinds of trading halts or suspensions.
China stocks swung wildly on Friday before ending the morning session up more than 2 percent, after regulators suspended a newly-minted circuit breaker mechanism to calm investor sentiment.
"Sales of medium voltage vacuum circuit breakers climbed 100 per cent compared with 2013, he said.
MECHANICS, WHEN WORKING ON ELECTRICAL SYSTEMS, ALWAYS MAKE SURE CIRCUIT BREAKERS ARE IN THE OFF (PULLED) POSITION.
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