It is a mechanism to set the fuse price for the contract before reaching the price limit, so the contract purchase and sale quotation can only be traded for a period of time within this price range. In financial transactions? Circuit breaker mechanism? Its function is to avoid excessive price fluctuation of financial trading products, give the market a cooling-off period, warn investors of risks, and win time and opportunities for relevant parties to take relevant risk control measures and means. When the daily fluctuation of stock index futures reaches 6%, it is the first melting point of Shanghai and Shenzhen 300 index futures trading. In this range, it is molten and continuous.
When the fuse point is reached, 10 minutes can still be traded, but the index quotation shall not exceed 6%. The fluctuation range is enlarged to 10%, which is equivalent to the upper limit of 10% for a single stock in the stock spot market. Get thinking time and operation time to control trading risks. When the market fluctuation reaches the melting point of 6%, traders have enough time to consider risk management methods and send trading instructions reflecting trading intentions to the computer host to facilitate trading after trading is resumed, which is enough.
Within ten minutes after the fuse mechanism is started, the agreed price of the contract shall not exceed the fuse price, and the matching transaction shall continue. After 10 minutes, the limit of fuse fluctuation is cancelled, and the limit of 10% fluctuation takes effect. If the fuse price is declared, the inspection period should be entered. The inspection time is one minute. During inspection, the declared price is not allowed to exceed the fuse price, indicating that the declared price exceeds the fuse price. ?