Circuit breaker
A circuit breaker is a rule-based mechanism that temporarily pauses or restricts trading when specified price movements occur. Its thresholds, scope and duration depend on the venue and instrument; it does not guarantee an orderly reopening or prevent further losses.
In a hypothetical market, an index crosses an exchange’s predefined decline threshold, triggering a temporary market-wide pause before trading resumes.
Risk warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Glossary definitions are general education only and are not investment advice. Risk disclosure