Market-Wide Circuit Breakers

Read the Free Lesson → free · no signup wall

Chapters in this video

  1. 0:00 The market fire alarm versus the individual stock bouncer
  2. 1:14 MWCB levels: 7%, 13%, 20% S&P 500 declines
  3. 3:18 Exam trap: the 3:25 PM Eastern Time rule
  4. 4:43 LULD three-step workflow and price bands
  5. 6:21 Market-wide versus LULD directional showdown
  6. 7:21 Rapid-fire exam recap

What this video covers

  • The three market-wide circuit breaker (MWCB) levels tied to S&P 500 declines of 7%, 13%, and 20%, and what triggers each
  • Why Level 1 and Level 2 halts last 15 minutes but Level 3 shuts the market for the remainder of the day
  • The 3:25 PM Eastern Time cutoff that eliminates Level 1 and Level 2 halts late in the session, while Level 3 still applies
  • Why MWCB only triggers on declines, not rallies, and why each level can only activate once per day
  • How Limit Up-Limit Down (LULD) creates price bands around a 5-minute average for individual National Market System (NMS) stocks
  • The 15-second limit state and 5-minute trading pause workflow for LULD, and why bands double in the last 25 minutes for Tier 1 stocks
  • The critical exam distinction that MWCB is decline-only while LULD halts on both up and down moves

Read the full lesson, free

This video's complete written lesson is free to read in the CertFuel app, no signup wall. When you're ready to drill the topic, the full Series 7 course adds adaptive practice questions and spaced-repetition flashcards.

Read the Free Lesson → free · no signup wall