The concept of a circuit breaker in the stock market is a topic of interest and research among BIST 100 investors. Triggering a circuit breaker in the stock market means temporarily halting trading transactions to prevent panic selling. So, what does a circuit breaker mean in the stock market? What happens if a circuit breaker is triggered? A circuit breaker in the stock market is a temporary measure taken against excessive fluctuations in the markets. This mechanism comes into play to prevent sudden price changes and protect investors when certain price levels are reached, automatically halting trading. Circuit breakers not only limit panic selling but can also come into effect in cases of excessive buying. Applied not only to major indices like the S&P 500 and BIST 100 but also to individual stocks, this system helps the market operate more smoothly.

Commonly used in global markets, circuit breakers serve as a break to allow investors to make more informed decisions.

HOW IS A CIRCUIT BREAKER APPLIED IN BORSA ISTANBUL? When the BIST100 index, comprising the top 100 companies in Borsa Istanbul, falls by 5% or more as the first threshold, a circuit breaker is applied. The second threshold triggers the circuit breaker if there is a 7% or more drop. The application of a circuit breaker in the stock market automatically goes into effect without any manual intervention. The Automatic Trading Halt System (Circuit Breakers) briefly refers to temporarily halting trading transactions in the Continuous Trading Session when the price change exceeds a threshold value, moving the process to the order collection stage.