What is a volatile Market?
Volatility is often associated with big swings in either direction. For example, when the stock market rises and falls more than one percent over a sustained period of time, it is called a volatile market. A higher volatility means that a security's value can potentially be spread out over a larger range of values. This means that the price of the security can change dramatically over a short time period in either direction. A lower volatility means that a security's value does not fluctuate dramatically, and tends to be more steady.
What is a Circuit Breaker?
The term "circuit breaker refers" to an emergency-use regulatory measure that temporarily halts trading. Circuit breakers attempt to curb panic-selling and can also be triggered on the way up with manic-buying. Circuit breakers function automatically by stopping trading when prices hit predefined levels.
What is a Trading halt?
A trading halt is a brief stoppage in trading for a particular security or securities. Trading halts are typically applied ahead of a news announcement, to correct an order imbalance, or as a result of a large and abrupt change in share price.
Was this article helpful?
That’s Great!
Thank you for your feedback
Sorry! We couldn't be helpful
Thank you for your feedback
Feedback sent
We appreciate your effort and will try to fix the article