We are only conducting Seminars to make Professional Traders. Join Now for Hyderabad and Chennai Seminar.

BSE NSE Circuit Breakers or Circuit Filters

Circuit breakers which brings about a coordinated trading halt in all equity and equity derivative markets nationwide and are applicable for the whole market. These circuit breakers are set to be triggered at an unprecedented move in the index which may be caused due to some panic or a political upheaval.

These index-based market-wide circuit breaker system is implemented on a quarterly basis and reviewed at beginning of a quarter. Percentages are calculated on the closing index value of the quarter. These are translated into absolute points of index variations (rounded off to the nearest 25 points in case of the Sensex).

It has three stages of the index movement as listed below:

  • 10 percent
  • 15 percent
  • 20 percent.

10 Percent Circuit Breaker

  • In case of a 10 percent movement of either of these indices, there would be a one-hour market halt if the movement takes place before 1 pm.
  • In case the movement takes place at or after 1 pm, but before 2.30 pm, there will be a trading halt for half an hour. In case the movement takes place at or after 2.30 pm, there will be no trading halt at the 10 percent level and the market will continue trading.

15 Percent Circuit Breaker

  • In case of a 15 percent movement of either index, there will be a two-hour market halt if the movement takes place before 1 pm.
  • If the 15 percent trigger is reached on or after 1 pm, but before 2 pm, there will be a one-hour halt.
  • If the 15 percent trigger is reached on or after 2 pm, trading will halt for the remainder of the day.

20 Percent Circuit Breaker

In case of a 20 percent movement of the index, the trading will be halted for the remainder of the day.

Verdict

This is a good control mechanism and can help more when the panic is set in the market as it will be a very rare scenario when market will rise high by 10% or more in a single day and because of that trading is halted. This helps more in case of sudden fall in the market as panic spreads like a wild fire and thus market drops like a thud. It gives some time for the Finance Minister or SEBI to come out and give some statement in public which will soothe the nerves of traders and investors.

Most Visited Stocks - Click to Visit Link

SEE WHAT OUR SUBSCRIBERS SAY !!

"First off all, I just want to say that your service is excellent – by far the best tips service I have encountered and quality of your Jackpot tips is really good and noticed that now I am getting daily profit. I can say that it makes a difference to choose the correct tips provider and it was my luck that I stumbled on your website."

- Rajesh

WELCOME TO SMART INVESTOR FAMILY

We Compliment you for becoming a part of mega family of more than 12 Lakh Smart Traders who are getting benefitted with our services worldwide. We assure You that we will deliver more than what we promise. Do remember to leave questions and Feedback. Your Success is Guaranteed with us!

You can Contact us through Contact Box provided on website or You can call us at 09041060460 or Email at info@indian-share-tips.com. You can make Online Payment through Payment Gateway installed on the website as we offer you the highest standard of security currently available on the Net so as to ensure that your online transaction is Private, Safe and Secure.

 
We Teach and Train our Clients First Before Joining as we want to make sure that clients trade in market as a thorough professional. Charges if any being paid by you are for the teaching and training and Trade Ideas given are provided free with the teaching and training and we do not charge any amount for it. If you can not join the seminar; you can learn from us via mobile and email. Your Joining with us is purely for educational purpose. Your joining is subject to acceptance of our terms and Disclaimer for which link is given on the site at bottom right hand corner. Wherever the word tip is written; it implies an idea which is of informational value and is not suitable for trading. We are conducting Seminars to make Professional Traders. Join Now for Bangalore, Chennai and Hyderabad Seminar. Call Now at 09358493584.
Chart> Nifty A B C D E F G H I J K L M N O P Q R S T U V W X Y Z 0-9