Kenneth William200 Miller#46

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How do circuit breakers and trading halts protect forex traders?

Unlike equities, forex lacks formal circuit breakers, but brokers may widen spreads or halt trading during extreme conditions. Institutions rely on clearinghouses to manage systemic risks. Retail traders often misinterpret halts as broker manipulation. Benefits: prevents catastrophic pricing errors. Risks: locked positions during halts create uncertainty. Circuit breakers highlight that forex relies on broker-level protections rather than centralized controls. Traders should know their broker’s halt policies—it may be the difference between protection and exposure.