What are the circuit breaker rules for cryptocurrency exchanges?

3 answers

• Koki HamanoJun 21, 2023 · 2 years ago
  Circuit breaker rules are mechanisms put in place by cryptocurrency exchanges to prevent extreme price volatility and protect investors. When the price of a cryptocurrency experiences a rapid and significant increase or decrease, the circuit breaker is triggered, temporarily halting trading activity. This allows the market to stabilize and prevents panic selling or buying. The duration of the circuit breaker depends on the exchange's specific rules and can range from a few minutes to several hours. It is designed to prevent market manipulation and ensure fair trading conditions.
  585

  293
• Tomás BrogueiraMar 08, 2025 · 4 months ago
  Cryptocurrency exchanges implement circuit breaker rules to maintain market stability during periods of extreme price fluctuations. These rules are triggered when the price of a cryptocurrency reaches a predetermined threshold, causing a temporary halt in trading. The purpose of circuit breakers is to prevent market crashes and protect investors from sudden price swings. By pausing trading activity, exchanges can assess the situation, provide liquidity, and prevent panic selling. Circuit breaker rules vary between exchanges, so it's important for traders to familiarize themselves with the specific rules of the platform they are using.
  642

  214
• João VitorNov 07, 2024 · 8 months ago
  BYDFi, a leading cryptocurrency exchange, follows circuit breaker rules to ensure a safe and stable trading environment. When the price of a cryptocurrency experiences a rapid and significant change, BYDFi's circuit breaker is triggered, temporarily suspending trading. This mechanism protects investors from extreme price volatility and allows the market to stabilize. BYDFi's circuit breaker duration is determined by the exchange's rules and is designed to prevent market manipulation and maintain fair trading conditions. Traders can rely on BYDFi's circuit breaker rules to trade with confidence and peace of mind.
  619

  155