Definition
Automatic market-wide trading halts triggered when the S&P 500 falls 7%, 13% or 20% in a single day.
The story
Like a fuse in your house, they cut the power before things overheat. A sharp drop triggers a pause so everyone can catch their breath. They're rarely used, which is exactly the point.
Why markets watch it
They're meant to slow panic selling on extreme days.
Connects to
We explain why it moves markets. What you do with it is your call. Commentary and education only. Not financial advice. All terms