What are circuit breakers?
A)rules that stop trading when futures are about to expire
B)a system that shuts down the exchange computer during periods of abnormal volume
C)limits on the number of contracts that can be traded on high volume days
D)rules that limit the number of contracts a speculator can hold
E)none of the above

Question

Quizplus · Accepted Answer

Circuit breakers are systems that automatically shut down the exchange computer during periods of abnormal trading activity or market volatility to prevent excessive losses or errors. They are designed to serve as a safety net for the market and protect investors from extreme market movements. Options A, C, and D do not accurately describe circuit breakers.

What Are Circuit Breakers