Affected by the epidemic and falling oil prices, the US stock market melted down four times in 10 days. Prior to this, the only real American stock market melted at 1997, and the Dow Jones Industrial Average plunged 7. 18%. The impact of the melting of US stocks on the market is very impactful, and it is easy to cause panic among investors. So 1987, the United States introduced the fuse mechanism, so what is the fuse mechanism of American stocks? Let's get to know each other.

What is the fuse mechanism of US stocks?

Simply put, the fuse mechanism of US stocks means that when the stock market falls to a certain extent, the market will automatically stop trading for a period of time. Under normal circumstances, after the fuse mechanism of US stocks is triggered, US stocks need to be suspended for 15 minutes. The fuse mechanism of American stocks can also be called automatic stop mechanism, which is a measure taken by the exchange to suspend trading in order to control risks. The fuse mechanism of US stocks can be divided into three levels during US trading. The primary market fuse refers to the market falling to 7%; The secondary market fuse refers to the market falling to13%; The third-level market fuse means that the market falls to 20%. During non-US trading hours, a 5% increase or decrease in the price of stock index futures will trigger the fuse mechanism.