What is a Circuit Breaker in NEPSE? Circuit breaker Rules of NEPSE?
What is a Circuit Breaker in NEPSE? In the volatile world of stock markets, mechanisms are needed to prevent panic selling and to maintain order. One such mechanism is the "circuit breaker." For investors and traders in the Nepal Stock Exchange (NEPSE), understanding circuit breakers is crucial for navigating market fluctuations. What is a Circuit Breaker? A circuit breaker is a regulatory measure used to temporarily halt trading on an exchange to curb panic selling and excessive volatility. When prices move beyond predetermined thresholds, trading is paused, allowing investors to take a breather, gather information, and make more rational decisions. This mechanism aims to maintain stability and investor confidence. How Do Circuit Breakers Work in NEPSE? NEPSE has established circuit breaker rules to protect the market from extreme volatility. The circuit breaker levels are based on the percentage change in the NEPSE index compared to the previous day's closing index....