U.S. stock fuses include 7%, 13% and 20% decline fuses. When these three percentage points are reached, the U.S. stock market will stagnate for a period of time, during which no stock trading will occur. The fuse mechanism is set in advance by the stock trading market and is a mechanism for self-risk adjustment and protection of the stock market.

Introduction to the circuit breaker mechanism

The circuit breaker mechanism is a phenomenon and mechanism in which the stock market will spontaneously stop trading when certain conditions are met. It refers to the fluctuation range of the trading index in the stock market. When a predetermined circuit breaker point is reached, the stock exchange adopts a stagnation restraint protection measure to control stock market risks. Before the contract reaches the trading limit, the stock market will set an appropriate circuit breaker price to limit the contract trading price to a certain range. Set general circuit breakers for stocks, futures or other financial derivatives. Narrow circuit breakers are specifically set to correspond to index futures. The circuit breaker mechanism first originated in the United States. In 2015, the China Securities Regulatory Commission introduced circuit breaker measures.