DEFINITION of 'Curb Trading'

Trading that occurs outside of general market regulations. Curb trading commonly occurs through computers or telephones after the official exchanges have closed.

Also known as "kerb trading".

BREAKING DOWN 'Curb Trading'

In the past, stocks that were considered unfit to trade on the New York stock Exchange were bought and sold on the street curb. This led to the formation of the American Stock Exchange, so curb trading now commonly refers to any trades outside of exchange regulations.

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