What do you mean, the US stock market blew up?
The fuse of US stocks means that after the stock market falls to a certain extent, the market will automatically stop trading for a period of time, which is consistent with the fuse mechanism of previous A shares. The purpose of the fuse is to prevent panic from spreading further, bring greater impact to the market, give investors a certain cooling-off time and prevent greater fluctuations. The motivation for the introduction of this system was the Black Monday of 1987, when US stocks fell by 22.6%, and then the fuse system was officially implemented in 10 that year.
The fuse system of American stocks is divided into three grades, namely 7%, 13%, and the third grade fuse is 20%. In the past 30 years, the US stock market has really triggered a fuse only once:199710/0. On October 27th, the Dow Jones Industrial Average plunged 7. 18% to close at 7161./kloc. So do you know what the rules of this fuse mechanism are?
The fuse mechanism of US stocks is mainly divided into two time periods, the first is the US session and the second is the non-US session. The fuse of non-US session is not only the fuse of rising, but also the fuse of falling, mainly for US stock futures. In the United States, there is only a falling fuse mechanism in the trading period, which is aimed at US stocks.
In this regard, during the American trading period, the fuse mechanism can be divided into three levels. The primary market is blown, which means that the market has fallen by 7%. The secondary market is blown, which means that the market is down 13%. The melting of the tertiary market means that the market has fallen by 20%. During this process, if the primary or secondary market is blown, and the time is between 9: 30- 15: 25 (inclusive), all stocks in the whole market will be suspended for 15 minutes. If it is after 15: 25 EST, the transaction will not be suspended. In addition, if the trading day is a half-day transaction, the deadline is 12: 25.
It should be noted that the whole market trading suspension based on the primary market fuse and the secondary market fuse is triggered only once a day. For example, if the price falls to 7%, it will cause the primary market to fuse, and then the price will rebound. When the price drops to 7% again, it will not fuse again, unless the price drop triggers the secondary market to fuse. If a 20% decline triggers a three-level fuse, then the US stock market will trade at any time of the day. If the tertiary market is blown, the whole market will stop trading until the opening of the next trading day.
During non-US trading, if the price of stock index futures rises or falls by 5%, it will trigger the fuse mechanism. In addition, if the futures main contract provides a limit purchase or a limit transaction at 8:23 am, but it is still a limit purchase or a limit sale at 8:25 am, then the transaction will be suspended until 8:30 am. During the suspension period, the Exchange will reduce the indicative opening price limit to 7%.
To sum up, this is the main mechanism of the US stock market fuse.