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Is there a minimum or maximum point/% stock market go down or up? ?
If say today dow is down 800 points, will it stop trading ?
9 Answers
- Net Advisor™Lv 71 decade agoFavorite Answer
upside to any stock: unlimited
downside to any stock: 0.00
"Circuit Breakers
The securities and futures markets have circuit breakers that provide for brief, coordinated, cross-market trading halts during a severe market decline as measured by a single day decrease in the Dow Jones Industrial Average (DJIA). There are three circuit breaker thresholds—10%, 20%, and 30%—set by the markets at point levels that are calculated at the beginning of each quarter. The formulas for these thresholds are set forth in the New York Stock Exchange (NYSE) Rule 80B.
For example, on April 1, 2007, the average value for the DJIA for the preceding month (March 2007) was used to calculate point levels (rounded to the nearest 50 points). This resulted in the Level One (10%) circuit breaker set at 1,250 points, Level Two (20%) circuit breaker set at 2,450 points, and the Level Three (30%) circuit breaker set at 3,700 points."
http://www.sec.gov/answers/circuit.htm
Brazil and Russia have been opening and closing their markets. This is a bad idea. If you close markets, they will ALWAYS reopen lower.
- 4XTraderLv 51 decade ago
Not at 800 points. The new circuit breakers for Q4 2008 are 1100, 2200 and 3350 points.
If the dow falls 1100 points before 2pm, trading is halted for 1 hours, if between 2:00 - 2:30 pm, trading it halted for half an hour and after 2:30 pm, there is no halt.
If the down falls 2200 point before 1 pm, there is a 2 hour halt, between 1 pm - 2 pm there is a 1 hour halt and after 2 pm, the market is closed.
If the down falls 3350 points the market closes for the day regardless of time.
- Terry OLv 71 decade ago
The market will always adhere to it's trading schedule, unless there is some national emergency. Trading in individual stocks can be halted whenever there is suspicious activity or when there are pending developments in a particular issue that merit halting trading until there is public disclosure.
Most traders have computerized trading monitors that alert them to significant changes in buying and selling trends, so that they can take action to stabilize and contain large moves in individual issues. Many of these together act as "Circuit breakers" to prevent precipitous moves across the entire market. When breaker thresholds are reached, trading can be temporarily halted to take a breather, but there is no daily max move cap in stock or bond markets. There are only maximum move caps on individual commodities traded on the commodities exchanges.
- Anonymous1 decade ago
up: no
down:yes
theer R preset points like 10% down & em stop the market for bout 1 our
If % drow 2 big, shut down & evreewon go home
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- Anonymous1 decade ago
There are countries that have stopped the market for fear of a complete meltdown. I think the government should interfere in times like this.
- 1 decade ago
If there was a significant crash in the market, they may pull the plug on trading, as they did on 9/11.
- Anonymous1 decade ago
Up NO
Down: YES
- Anonymous1 decade ago
please stop this blood bath...this is like the beach of normandy..