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How Do Price Limits Differ from Trading Halts as a Circuit Breaker Mechanism?

Price limits constrain the trading range; trading halts completely suspend all trading activity for a set time.
Greeks.Live24.11.25

How Do Price Limits Differ from Trading Halts as a Circuit Breaker Mechanism?

Price limits set a maximum allowable price range within which an asset can trade during a specific period; trades outside this band are rejected. A trading halt is a temporary suspension of all trading activity for a set duration.

Price limits allow trading to continue within a constrained range, while a trading halt completely stops the market to allow participants to assess the situation and restore order.

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