What is the US stock fuse mechanism What are the starting conditions for the US stock fuse mechanism

The recent frequent fluctuations in the U.S. stock market have attracted the attention of many investors. The longest we should hear is the saying that the U.S. stock market is blown. Therefore, Xiaobian will take you today to understand the U.S. stock fuse mechanism and see what will trigger it. US stock fuse mechanism.

What is the US stock fuse mechanism

If the stock index futures price rises or falls by 5% during non-US trading hours, the fuse mechanism will be triggered. If the main futures contract is a limit buy or limit transaction provided at 8:23 am, it will still be at 8:25 am Buy at limit or sell at limit, then trading will be suspended until 8:30 AM. During the suspension period, the exchange will reduce the price limit for opening instructions to 7%. Except for the non-US trading hours, the futures have a fuse for the rise, and the US trading hours only have a fuse for the decline.

Trigger conditions for the US stock fuse mechanism

In the United States during the trading hours, the fuse mechanism can be divided into three levels: primary market fuse refers to a market decline of 7%; secondary market fuse refers to a market decline of 13%; tertiary market fuse refers to a market decline of 20%. If the primary or secondary market is triggered, and the time is between 9: 30-15: 25 (East) Eastern Time, all stocks in the entire market will be suspended for 15 minutes; after 15:25 Eastern Time, trading will not be suspended If the trading day is half-day trading, the time cut-off point is 12:25; if the third-level market fuse is triggered at any trading time throughout the day, the whole market will stop trading until the next trading day opens. The market decline here is the index 500 index in the regular trading hours (9: 30-16: 00 EST), the index point compared to the previous day's closing point fell.

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