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CGeneralUpdated 2 Nov 2026

Circuit breaker

Trading halt mechanism to prevent excessive market volatility and panic selling.

Definition

Circuit breaker is the trading halt mechanism to prevent excessive market volatility and panic selling. Founders reach for it when a vague conversation needs a shared, specific meaning. Name it clearly, then let the next decision — a hire, a price, a test, or a pass — follow from that meaning.

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In the room

How the word shows up in a real conversation.

In a Monday review, someone writes Circuit breaker on the board and restates it: “Trading halt mechanism to prevent excessive market volatility and panic selling.” The next move is a test, a cut, or a double-down — not another debate about the word.

Common mistake

Using Circuit breaker as a label instead of a fact. If you cannot point to the evidence — a number, a customer, or a written assumption — you are using the word as jargon.

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