1. if index or any store crosses the price range within which an index or stock price is allowed to move, a circuit breaker is triggered.

2. There are 10%, 15%, or 20% circuit breaker triggers for the index.

3. Trading in all share And the equity derivatives market is halted when the circuit limit for the index is hit and trading resumes after a time, depending on whether it was a rise or fall. After that the markets reopen.

4. In India, the circuit limits are determined by the Securities and Exchange Board of India (SEBI)

5. A circuit filter is installed to ensure and to protect the investors that there is no excessive price movement.

(Content on this page is courtesy of Center for Investment Education and Learning (CIEL). Contributions by Girija Gadre, Aarti Bhargava and Labh Mehta.)