Trading Curb

Dictionary Says

Definition of 'Trading Curb'

A temporary restriction on program trading in a particular security or market, usually to reduce dramatic price movements. Also known as a collar or circuit breaker.
Investopedia Says

Investopedia explains 'Trading Curb'

When the "curbs are in" at the NYSE, it means that certain types of trading are restricted to prevent volatility. Depending on the situation, this can mean that either all trading is halted or that certain sales can be executed only on an uptick. This kind of rule was implemented after the crash of 1987 (Black Monday), as program trading was thought to be a primary cause of the drop.

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Related Definitions

  1. Black Monday

    October 19, ...
  2. Circuit Breaker

    Refers to any of ...
  3. Collar

    1. A protective ...
  4. Program Trading

    Computerized ...
  5. Trading Halt

    A temporary ...
  6. Panic Selling

    Wide-scale ...
  7. Panic Buying

    A type of ...
  8. Trade Resumption

    To resume ...
  9. Suspended Trading

    A stoppage in ...
  10. Directional Trading

    A general term ...

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