Question 1: What is the melting mechanism? To put it simply, the melting mechanism is the same as a fuse. The fuse has a specified load. When the voltage is too high, it will automatically melt, thus ensuring the safety of electricity. . The stock market sets a circuit breaker mechanism, which means that a certain stock is set with a maximum increase of the day. When the maximum increase is exceeded, a certain stock can no longer be traded. This is the so-called circuit breaker mechanism. The same is true for the decline. , The purpose of this is to ensure that shareholders can handle transactions and prevent stock market turbulence. According to the information released by the China Securities Regulatory Commission, it seems that the circuit breaker mechanism will be implemented from January 1 next year, and the increase or decrease is set to ±7%. I wish you a fortune.

Question 2: What does fusing mean? Fusing: The original meaning is that when a solid is heated to a certain temperature, it becomes a liquid and breaks.

Extended meaning: In futures trading, when the price fluctuation reaches the specified points, the transaction will stop for a period of time, or the transaction can continue, but the price range cannot exceed one point other than the specified points. This trading system is called the "circuit breaker" mechanism.

Question 3: What does circuit breaker mean in the stock market? Circuit Breaker, also called automatic suspension mechanism, refers to the suspension that the exchange takes to control risks when the stock index volatility reaches the prescribed circuit breaker point. trading measures.

Specifically, it is a mechanism that sets a circuit breaker price for a certain contract before it reaches the price limit, so that the contract's buying and selling quotations can only be traded within this price range for a period of time.

On December 4, 2015, the Shanghai Stock Exchange, Shenzhen Stock Exchange, and China Financial Futures Exchange officially issued regulations related to index circuit breaker. The circuit breaker benchmark index is the CSI 300 Index, using two thresholds of 5% and 7%. It will be officially implemented on January 1, 2016.

In order to maintain the smooth operation of the market, with the approval of the China Securities Regulatory Commission, the Shanghai Stock Exchange decided to suspend the implementation of the provisions of Chapter 4, Section 5 of the "Shanghai Stock Exchange Trading Rules" from January 8, 2016 "Exponential circuit breaker" mechanism.

Question 4: What does the stock market circuit breaker mean? According to the announced China index circuit breaker rules, the target index for A-share circuit breaker is the CSI 300 Index.

The circuit breaker thresholds are two levels: 5% and 7%. After the index triggers the 5% circuit breaker, trading of securities within the circuit breaker range will be suspended for 15 minutes; but if it occurs in the late trading period (14:45 to 15:00 period) or trigger 7% at any time throughout the day, trading will be suspended until the market closes.

Question 5: What does the index circuit breaker mechanism mean? The circuit breaker mechanism (CircuitBreaker) refers to setting a circuit breaker price for a certain contract before reaching the price limit, so that the contract buying and selling quotation can only be within a period of time. The mechanics of trading within this price range. Foreign circuit breaker systems have two forms: "melting and breaking" and "melting and continuing". "Breaking without melting" means that after the price hits the melting point, trading will stop for a period of time; "Breaking without melting" means that after the price hits the melting point, trading will continue for a period of time, but the quotation will be limited to the melting point. within. In stock trading, the "circuit breaker mechanism" refers to a mechanism that stops trading for a period of time when the price volatility reaches a specified level. For example, the "circuit breaker" mechanism for the U.S. stock market is to temporarily suspend trading for 15 minutes when the S&P 500 index falls by 5%; when it plummets by 10%, it is temporarily suspended for one hour; when it plummets by 20%, the stock market is closed for one day.

Question 6: What does it mean to activate a circuit breaker in the stock market? In order to prevent the risk of significant market fluctuations, further improve the trading mechanism of my country's securities market, maintain market order, protect the rights and interests of investors, and promote the long-term stable and healthy development of the securities market, with the consent of the China Securities Regulatory Commission, the Shanghai Stock Exchange and the Shenzhen Stock Exchange ( The Shanghai and Shenzhen Stock Exchanges (hereinafter referred to as the “Shanghai and Shenzhen Stock Exchanges”) and the China Financial Futures Exchange (hereinafter referred to as the “China Financial Futures Exchange”) plan to introduce an index circuit breaker mechanism while retaining the existing individual stock price increase and decrease system. The overall arrangement of the index circuit breaker mechanism is: when the daily rise and fall of the Shanghai and Shenzhen 300 Index reaches a certain threshold, trading of all stocks, convertible bonds, separable bonds, stock options and other stock-related products listed on the Shanghai and Shenzhen Stock Exchanges will be suspended. All stock index futures contracts on the exchange are suspended from trading. After the trading suspension period is over, trading will resume or close directly depending on the situation. The key points and main considerations of the index circuit breaker mechanism plan are as follows: 1. Use the CSI 300 Index as the benchmark index for the index circuit breaker. The main considerations are: First, the cross-market index is better than the single-market index. The cross-market index is more representative and can more comprehensively reflect the overall fluctuations of the A-share market, while the single-market index mainly reflects the operation of a specific market. Second, the CSI 300 Index is the first choice among cross-market indexes. Currently, the cross-market indexes that investors in the A-share market are familiar with include the CSI 300 Index (the constituent stocks are mainly large and medium-sized market capitalization stocks) and the CSI 500 Index (the constituent stocks are mainly small and medium-sized market capitalization stocks). The market capitalization coverage of the CSI 300 Index and the number and scale of index tracking products are greater than those of the CSI 500 Index. 2. Set two index circuit breaker thresholds of 5% and 7%. The circuit breaker will be circuit breaker for both ups and downs. Each circuit breaker will only be triggered once at most during the day.

The main considerations are: First, 5% as the first threshold can take into account the dual needs of setting a cooling-off period and maintaining normal transactions; although the situations that trigger 7% are rare, they are major abnormal situations that need to be guarded against and should be considered together. Second, two-way circuit breakers are more conducive to curbing excessive trading and controlling market fluctuations. The domestic market is in an emerging and transitional stage. The investor structure is dominated by small and medium-sized retail investors. Prices fluctuate greatly in both directions. There have been panic declines and excessive rises, including short-term sharp rises in the market due to accidents. Therefore, when the market "surges", a circuit breaker mechanism is also needed to stabilize the market excitement, prevent investors from overreacting to the market rise, and give investors more time to further confirm whether the current price is reasonable. 3. Determine the index circuit breaker time by binning. When the 5% circuit breaker threshold is triggered, trading will be suspended for 30 minutes, and *** bidding will be conducted when the circuit breaker ends, after which day trading will continue. If the 5% circuit breaker threshold is triggered at or after 14:30, and the 7% circuit breaker threshold is triggered at any time throughout the day, trading will be suspended until the market closes. If the circuit breaker closes at 15:00 and trading is not resumed, the closing price of the relevant securities will be the volume-weighted average price of all transactions one minute before the last transaction of the security on that day (including the last transaction). The closing price of the option contract will still be based on Implementation of relevant rules. 4. Arrangements for special periods. First, the circuit breaker will not be implemented during the opening*** bidding stage; if the opening index point has triggered the 5% threshold, the circuit breaker will be implemented at 9:30 and trading will be suspended for 30 minutes; if the opening index point has triggered the 7% threshold, the circuit breaker will be implemented. The circuit breaker will be implemented at 9:30 and trading will be suspended until the market closes. Second, if the circuit breaker duration is insufficient in the morning, it will be made up after the market opens in the afternoon. The lunch break time will not be included in the circuit breaker duration to facilitate investors to adjust their declarations. Third, the circuit breaker mechanism is effective throughout the day. Considering that the domestic A-share market is prone to irrational and large fluctuations in the late market stage, A-share circuit breakers are still implemented during the late market stage. Fourth, the circuit breaker is only implemented in the morning on the stock index futures delivery day. Regardless of the trading suspension caused by hitting 5% or 7%, trading will be resumed in the afternoon, so that the stock index futures can calculate the delivery settlement price and deliver smoothly. 5. Index circuit breaker range and futures-to-cash linkage. When the circuit breaker is triggered, the Shanghai and Shenzhen Stock Exchanges suspend all market-wide transactions in stocks, funds, convertible bonds, detachable bonds, stock options and other stock-related products. The specific securities types of the circuit breaker shall be subject to the announcement. Trading of all stock index futures products has been suspended simultaneously (including CSI 300, CSI 500 and SSE 50 stock index futures), but treasury bond futures trading is proceeding normally. 6. Arrangements for the connection between index circuit breaker and trading suspension. For listed companies that apply for a stock trading suspension or require new shares to be temporarily suspended during the trading session, if the planned resumption of trading coincides with the index circuit breaker, the resumption of trading must be continued until the end of the index circuit breaker. If the index circuit breaker ends but the trading suspension time of the relevant stocks has not yet expired, the trading suspension will need to continue.

Question 7: What does the circuit breaker mechanism of the stock market mean? The circuit breaker mechanism means that during the transaction process, when the price fluctuation reaches a certain limit, the transaction will be suspended for a period of time, or the transaction can continue, but Quotes are limited to a certain range. Since this situation is similar to that of a fuse that will blow when the current is excessive, thereby protecting the electrical appliance, it is called the fusing mechanism.

According to the announced Chinese version of the index circuit breaker rules, the A-share circuit breaker target index is the CSI 300 Index.

The circuit breaker thresholds are 5% and 7%. After the index triggers the 5% circuit breaker, trading of securities within the circuit breaker range will be suspended for 15 minutes; period) or trigger 7% at any time throughout the day, trading will be suspended until the market closes.

Question 8: What does the stock meltdown threshold mean? To put it simply, it means setting an artificial ratio for the decline or rise of the market, such as setting two thresholds of 5 or 7%. Once this ratio is exceeded, trading will be suspended!

Question 9: What is the meaning of stock circuit breaker? The CSI 300 Index fell below 5% for the first time, and trading was suspended for 15 minutes. If it fell below 7%, trading was stopped directly until the close of trading, and the whole day was over