Circuit breakers are like a speed breakers to break any kind of momentum which is against the appetite of the market. Have a look at below percentages which leads to stoppage of trading in stock market.
- A 10% move before 1.00 pm halts trading for 1 hour, between 1 pm and 2.30 pm there is a half hour halt and after 2.30 pm there is no suspension of trading.
- A 15% move in either direction before 1 pm leads to a 2 hour halt, between 1pm and 2pm to a one hour halt and after 2pm trading is suspended for the day.
- A 20% market movement leads to suspension of trading for the rest of the day.
Just remember that circuit breaker is your friend and should not be frowned as it is a risk control mechanism. You can make maximum profit with
intraday trading tip which finish by 11:30 AM as trading for whole day does not make sense.