ECONOMICS
FINANCIAL MARKETS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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10%, 12%, 15%
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10%, 15%, 20%
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5%, 10%, 15%
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10%, 12%, 20%
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Detailed explanation-1: -If an index jumps or falls 10 percent, 15 percent, or 20 percent, the circuit breaker is triggered, followed by a coordinated trading halt in all equity and equity derivative markets nationwide.
Detailed explanation-2: -Circuit breakers are temporary measures that halt trading to curb panic-selling on stock exchanges. U.S. regulations have three levels of a circuit breaker, which are set to halt trading when the S&P 500 Index drops 7%, 13%, and 20%.
Detailed explanation-3: -The circuit breaker system raises a red flag when an index either dips or rises by 10%, 15% and 20%. When this happens, trading is halted not just in equity markets, but also in the derivatives markets in India. The halt can be for a few minutes or it might last for the remainder of the trading day.
Detailed explanation-4: -Circuit breakers halt trading on the nation’s stock markets during dramatic drops and are set at 7%, 13%, and 20% of the closing price for the previous day. The circuit breakers are calculated daily.