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Term of the Day - September 15th, 2004
http://www.investopedia.com
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Term Of The Day: Trading Curb
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A temporary restriction on program trading in a particular
security or market, usually to reduce dramatic price movements.
Investopedia Says:
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When the NYSE institutes a program trading curb (sometimes
called a collar), program selling can only executed on an
up-tick. That means that the last trade was executed at a
higher price than the trade before it. Program buying can
only be executed on a down-tick. That means that the last
trade was executed at a lower price than the trade before
it.
When the "curbs are in" at the NYSE it means that certain
types of trading are restricted to prevent enormous
volatility.
Related Links:
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Article: Circuit Breaker & Curb Info
http://invest-faq.com/articles/exch-circuit-brkr.html
Article: Program Trading Curbs
http://www.programtrading.com/curbs.htm
Website: The Investing Site
http://www.theinvestingsite.com/stocks/technicalanalysis.asp
Related Terms:
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Black Monday
http://www.investopedia.com/terms/b/blackmonday.asp
Circuit Breaker
http://www.investopedia.com/terms/c/circuitbreaker.asp
Collar
http://www.investopedia.com/terms/c/collar.asp
Program Trading
http://www.investopedia.com/terms/p/programtrading.asp
Trading Halt
http://www.investopedia.com/terms/t/tradinghalt.asp
Have a Great Day!
The Investopedia Staff
http://www.investopedia.com
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