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circuit breaker Definition

☆ circuit breaker

noun

a switchlike safety device that automatically interrupts the flow of an electrical current in a circuit when it has become excessive

circuit breaker Finance Definition
A circuit breaker in a stock or futures exchange works in the same way as the circuit breakers in a home; both cut off electricity before the system becomes dangerously overloaded. Circuit breakers are designed to stop the market from going into a free-fall and are intended to restore stability by helping rebalance the number of sell and buy orders. Separate circuit breakers are triggered when the Dow Jones Industrial Average (DJIA) drops 10 percent, 20 percent, and 30 percent; the point value of each of these thresholds is calculated at the beginning of each quarter by the New York Stock Exchange. The amount of time that trading is halted depends upon the severity of the drop. Circuit breakers were instituted after Black Monday in October 1987, when the U.S. stock market crashed, and have been revised after various market sell-offs, including October 1989.

Each stock and futures market also sets its own individual circuit breakers. In the future market, circuit breakers are referred to as price limits, which also limit upward movements. Trading collars limit index arbitrage trades by allowing those trades to be placed only if they are the opposite of the market’s direction. For example, a buy order could be processed in a declining market. See also collar and price limits.

circuit breaker Usage Examples

Converse of object

  • reset: Then, reset the circuit breaker switch to ' ON ' .
  • trip: The fuse may be blown or the circuit breaker tripped.
  • use: Try using manual circuit breakers to cut power to the fuel flow.
  • mount: It is widely used, especially in Europe, for mounting circuit breakers and industrial control equipment inside equipment racks.
  • include: A surge suppressor includes a circuit breaker that will protect equipment from damage from a surge in electricity ( e.g. a lightning strike ).
  • install: To protect the controller from possible damage you should install a 20 amp circuit breaker or fuse between the controller and the batteries.

Adjective modifier

  • miniature: The older fuse wire are being replaced gradually by their modern equivalent, the MCB or miniature circuit breaker.
  • residual: Consider if the use of residual current circuit breakers or isolating transformers would be an advantage.
  • current: Consider if the use of residual current circuit breakers or isolating transformers would be an advantage.
  • main: If the light itself were to fail, the power surge would trip the main circuit breaker and the whole tower would shut down.
  • magnetic: In 2003 with a big cruise pending, I recovered an ELCB and some magnetic mains circuit breakers from a scrapped power distribution box.
  • incoming: The overall substation kW hrs metering is undertaken from the incoming circuit breaker.

Modifies a noun

  • rating: All of our windlasses carry a recommendation on circuit breaker rating based on continuous operation.
  • trip: If the circuit breaker trips or the fuse blows call out the repair service.
  • box: We are still waiting for the circuit breaker box to come from CERN.
  • panel: Photo right shows the back of the lift out dc circuit breaker panels.
  • etc: Ensure that all electrical fuses and circuit breakers etc are of the correct rating and suitable for the purpose.

Noun used with modifier

  • leakage: I finally read her trip switch: it says: ' earth leakage circuit breaker ' / current op / 30 mA trip.
  • earth: I finally read her trip switch: it says: ' earth leakage circuit breaker ' / current op / 30 mA trip.
  • main: In 2003 with a big cruise pending, I recovered an ELCB and some magnetic mains circuit breakers from a scrapped power distribution box.