What is a 'Trading Curb'

A trading curb is 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.

BREAKING DOWN '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.

  1. Curbs Out

    A term used in investing to signify when trading curbs are no ...
  2. Curbs In

    A term used in investing to signify when trading curbs are active. ...
  3. Circuit Breaker

    Circuit breakers are measures approved by the SEC to curb panic-selling ...
  4. SSE Composite

    The SSE Composite is a market composite made up of all the A-shares ...
  5. Collar Agreement

    A collar agreement is a series of financial transactions aimed ...
  6. White Collar

    White collar is the working class that commonly works office-based ...
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