Trading Curb
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 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. |
Related Definitions
Articles Of Interest
-
How The Power Of The Masses Drives The Market
Market psychology is an undeniably powerful force. Find out what you can do about it. -
Connecting Crashes, Corrections And Capitulation
Even though crashes, corrections and capitulations are bad news for investors holding the stock, there are still ways to profit. -
Understanding Investor Behavior
Discover how some strange human tendencies can play out in the market, posing the question: are we really rational? -
Market Problems? Blame Investors
Investors are only human, and their irrational behavior can often move the market. -
The Greatest Market Crashes
From a tulip craze to a dotcom bubble, read the cautionary tales of the stock market's greatest disasters. -
Sell In May – Yay Or Nay?
Seasonal timing in the market, best personified by the adage, “Sell in May – Go away,” has long been the subject of debate among investors. The question remains: Is there anything to it? -
Other Options For The Cyprus Bailout
Find out the other options Cyprus could use to resolve it's financial troubles, since its proposal to tax bank deposits didn't work out. -
The Cyprus Crisis 101
Discover what's behind the Cyprus debacle and what investors should do about the situation. -
All The Cliffs You Need To Know About
In addition to the oft-cited fiscal cliff, there are economic, tax, political, geopolitical and earnings pitfalls to avoid. -
Major Indexes Near Pre-Recession Levels: Is History Repeating Itself?
The markets look to be moving back to where they were before the recession. Does this mean another is on the way?
Free Annual Reports