Circuit Breaker

Trading Basics

Circuit Breakers

When exchanges stop the trading in a security that has fallen significantly.

This is done to stop an uncontrollable panic.

Other Trading Basics

Bid-Ask Spread

The difference between the price the trader and buy at and the price they can sell at.

Also bid-offer spread. The wider the spread, the more the trader pays, reactively.

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Bid

Traders can go short at the bid price.

The terminology is from the broker point of view, they are bidding to buy from you.

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