Curbs Out

DEFINITION of 'Curbs Out'

A term used in investing to signify when trading curbs are no longer active. Curbs are temporary limitations or restrictions on the trade of a particular security. "Curbs out" means that these restrictions are lifted, so trading can occur as usual.


Trading curbs are usually used to reduce the sudden movement of a security's price, so as 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.