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Stock-Trading Halts, and How They Work When the S&P Plunges - Barron's

Monday’s dramatic stock-market drop makes it worth revisiting so-called circuit-breaker levels, the thresholds at which exchanges halt or close market-wide trading due to extreme declines. These levels are calculated daily, based on the previous day’s close in the S&P 500.

Circuit breakers came about as a result of Black Monday in October 1987. It takes a lot to hit even the first level, though trading pauses on the individual stock level happen more often.

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February 25, 2020 at 12:55AM
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Stock-Trading Halts, and How They Work When the S&P Plunges - Barron's
"Trading" - Google News
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