How many times did Nepse close due to 6 percent positive circuit? This is the history of circuit breakers
The NEPSE index closed up 6 percent on Tuesday. NEPSE, which has been declining continuously lately, has risen at a high rate on this day.
Is this the first time investors have closed at 6 percent after the market rose at such a high rate? The curiosity has been aroused. Some investors have started saying that this is the first time that 6 percent of the circuit has been closed. However, this is not the first time that the data has gone up by 6 percent.
Even before this, NEPSE had closed at three trading days, up 6 percent. On Tuesday, July 3, 2077, NEPSE had risen 6 percent for the first time. On the same day, NEPSE closed at 1260.75 points. On the next trading day, that is, on July 3, NEPSE had closed 6 percent higher. Similarly, for the third time, NEPSE had closed at 4 percent on July 19 of the same year. And today, for the fourth time, NEPSE has risen 6 percent and closed before the trading period.
Lately, the NEPSE index has been continuously declining. On Monday, the NEPSE had dropped 79.57 points to below 2300 points. Which is 28 percent below the all-time high. As NEPSE has almost reached the bottom line, investors have started entering the market.
NEPSE had changed the rules of circuit breaker from March 3, 2075. According to the new rules, if the NEPSE rises 4 percent within 20 minutes within one hour of opening the market, 40 minutes if it rises 5 percent within two hours and if it rises 6 percent during the rest of the trading period, the trading was closed for that day. Since then, NEPSE has closed 4 times (including today) up 6 percent.
What is a circuit breaker?
The stock exchange has set limits on the price fluctuations in securities trading to control the unnatural fluctuations in the price of securities. This is called circuit breaker in market parlance. The stock exchange has made such arrangements for market stability, safe and easy trading.
credit: merolagani
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