Markets: A Rigorous Course

M01 · Problem 18 ★ Check

Circuit breakers

The Nifty closed yesterday at 24,500. (a) Compute the 10%, 15% and 20% lower trigger levels. (b) If the index falls 10% at 13:40, how long is trading halted, and how does it restart? (c) If after restarting it falls 15% from yesterday's close at 14:10, what happens? (d) A non-F&O stock in the 5% band closed at ₹412. Up to what price can it trade today, and what does a "close at the lower band" in your data mean for a backtest that sells at the close?

Answers

Commas, ₹, % and 1e-3 notation are accepted.

Working

Keep your working next to each problem, in markdown with maths: create a free account or sign in.

Solution

Try the problem first. Write down where you got stuck before opening it.

Create a free account

Reading is open to everyone. An account keeps your progress, answers, notes and code drafts, and gives you the study plan, the journals and the simulator. Running code needs an account approved for it.