In just 10 days, there have been four US stock market crashes, which have a great impact on the stock market and the global economy. The so-called melting of US stocks means that the market automatically stops trading for a period of time after the stock market falls to a certain extent. The main purpose of the US stock fuse mechanism is to reduce the impact of excessive decline on the market, but also to prevent the spread of panic. So under what specific circumstances will it trigger the fuse mechanism of US stocks?
Trigger conditions of fuse mechanism in US stocks
During the US 1 trading session, the market fell by 7%, triggering the primary market to fuse; The market decline reached 13%, triggering the secondary market to fuse; The market fell by 20%, which triggered the melting of the tertiary market.
During non-US trading hours, when stock index futures rise or fall by 5%, the fuse mechanism of the US stock market will be triggered. After the fuse is triggered, all contracts that rise or fall more than 5% cannot be traded.