Definition
A kill switch is the manual override for a trading system. Activating it stops all active operations immediately: cancels every open order, closes every open position (at market if necessary), and suspends the agent from placing any new trades. It's the "stop everything, right now" button for situations outside the scope of automated risk controls.
Kill switch vs circuit breaker
| Feature | Kill Switch | Circuit Breaker |
|---|---|---|
| Trigger | Manual (you activate it) | Automatic (system detects failure) |
| Scope | All positions and orders | Single failed-leg position |
| Use case | Unexpected events, concern, maintenance | Failed Leg 2 execution |
| Speed | Immediate on activation | Fires within milliseconds of trigger |
When to use the kill switch
- Breaking news that makes you uncertain about event resolution outcomes
- Suspected API issue or unusual agent behaviour
- You need to withdraw funds from one or both platforms
- Regulatory uncertainty or platform announcement requiring review
- Any situation where you want full certainty that no new trades will be placed
Kill switch in Arbitrage Agent
Arbitrage Agent's dashboard has a kill switch accessible in one click (or via API). Activating it immediately cancels all open orders across both platforms, records the action in the audit log, and prevents any new trades until you explicitly re-enable the agent. Positions already filled are not automatically reversed (to avoid slippage) — you manage those manually or re-enable the agent to let it handle them.