Traditional exchanges have been using “circuit breakers” to curb panic selling, and it might be time for crypto exchanges to follow suit.
Yesterday, March 9, trading on the New York Stock Exchange was suspended for 15 minutes. This was due to the S&P 500 Index shedding more than 7% in the morning trading hours. A circuit breaker is a mechanism that suspends trading for a period of time based on market triggers, like Monday’s 7% decline, to prevent traders from behaving in a way that could cause further market slides.
What Is a ‘Circuit Breaker’ and Why Do Exchanges Need Them?
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