Curbs In

AAA

DEFINITION of 'Curbs In'

A term used in investing to signify when trading curbs are active. Curbs are temporary limitations or restrictions on the trade of a particular security. Curbs in means that these restrictions are in place, so trading has been suspended.

INVESTOPEDIA EXPLAINS 'Curbs In'

Trading curbs are usually used to reduce the sudden movement of a security's price. This is done to reduce the volatility of the market. Some people believe that curbs actually increase uncertainty and limit the ability of the market to reach an equilibrium price. Taking curbs out, they think, would allow the price to fall or rise to a market-determined level.

RELATED TERMS
  1. Circuit Breaker

    Refers to any of the measures used by stock exchanges during ...
  2. Curb Trading

    Trading that occurs outside of general market regulations. Curb ...
  3. Panic Selling

    Wide-scale selling of an investment, causing a sharp decline ...
  4. Panic Buying

    A type of behavior marked by a rapid increase in purchase volume ...
  5. Trading Curb

    A temporary restriction on program trading in a particular security ...
  6. Trading Halt

    A temporary suspension in the trading of a particular security ...
Related Articles
  1. Understanding Order Execution
    Investing Basics

    Understanding Order Execution

  2. Tips For Investors In Volatile Markets
    Investing

    Tips For Investors In Volatile Markets

  3. Direct Access Trading Systems
    Options & Futures

    Direct Access Trading Systems

  4. Brokers and Online Trading
    Options & Futures

    Brokers and Online Trading

comments powered by Disqus
Hot Definitions
  1. Market Segmentation

    A marketing term referring to the aggregating of prospective buyers into groups (segments) that have common needs and will ...
  2. Effective Annual Interest Rate

    An investment's annual rate of interest when compounding occurs more often than once a year. Calculated as the following: ...
  3. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  4. Odious Debt

    Money borrowed by one country from another country and then misappropriated by national rulers. A nation's debt becomes odious ...
  5. Takeover

    A corporate action where an acquiring company makes a bid for an acquiree. If the target company is publicly traded, the ...
  6. Harvest Strategy

    A strategy in which investment in a particular line of business is reduced or eliminated because the revenue brought in by ...
Trading Center