# Circuit Breaker

*Trading & Technical Analysis — Finicade finance glossary*

A circuit breaker pauses trading after a sharp move, giving participants time to assess and letting the order book rebuild. US markets halt for 15 minutes on 7% and 13% index declines and close for the day at 20%. Single stocks have their own bands. The debate is whether pauses calm panic or intensify it by making participants rush to trade before the next halt.

**Also known as:** trading halt, limit up limit down, market halt

**Related terms:** [Volatility](https://finicade.com/glossary/volatility), [Price Gap](https://finicade.com/glossary/price-gap), [Stock Exchange](https://finicade.com/glossary/stock-exchange), [Market Order](https://finicade.com/glossary/market-order), [Systemic Risk](https://finicade.com/glossary/systemic-risk)

Source: https://finicade.com/glossary/circuit-breaker