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Limit moves & circuit breakers in markets

Limit moves and circuit breakers are tools used by exchanges to prevent very large market moves and to protect market participants. It represents the maximum amount of market price change before trading is stopped or paused by the exchange. While the limit move is applied in a various amount of futures markets, the circuit breaker is commonly used in the stock market.

Tomas Matejka

13. 3. 2020

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