The meaning of a circuit breaker in the stock market is a topic that catches the attention of BIST 100 investors who are curious and researching. Circuit breaker in the stock market refers to the temporary suspension of trading activities in order to prevent panic selling in the markets. So, what is a circuit breaker in the stock market? What happens if trading is halted? A circuit breaker in the stock market is a temporary measure taken against excessive fluctuations in the markets. This mechanism, which intervenes to prevent sudden price changes and protect investors, automatically halts trading when certain price levels are reached. Circuit breakers are not only activated to limit panic selling, but can also come into play in cases of overbought situations. This system, which can be applied not only to major indexes like the S&P 500 and BIST 100, but also to individual stocks, helps the market operate more healthily. Circuit breakers widely used in global stock exchanges serve as a break to allow investors to make more informed decisions.

HOW IS A CIRCUIT BREAKER APPLIED IN ISTANBUL STOCK EXCHANGE? If the BIST100 index, which includes the largest 100 companies in Borsa Istanbul, falls by 5% or more as the first threshold, a circuit breaker is applied. If it falls by 7% or more as the second threshold, the circuit breaker is applied. The implementation of circuit breakers in the stock market automatically comes into effect without requiring manual intervention. The Automatic Session Halting System (Circuit Breakers), briefly; it is the temporary suspension of trades and transition to the order collection phase when the price change exceeds the threshold value in the Continuous Trading Session.