Shock Absorber
Definition of 'Shock Absorber'A temporary restriction placed on the trading of index futures because of substantial intraday decreases in the underlying indexes. |
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Investopedia explains 'Shock Absorber'Shock absorbers are very similar to circuit breakers. However, these restrictions are more specific as they isolate a single index and are enacted at a tighter level. The shock absorbers restrict trading and provide a period of information and pricing absorption for the holders of index futures contracts. |
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