Recently I've been watching CNBC and during the last couple days they've been saying that trading curbs have gone in due to the volatility. What does this mean? What are the curbs?
The curbs are restrictions on the the computer trading of the exchange this way they can limit the swings of the days. The curbs that have been instated over the past few days have been the NYSE collar. These are stated when the NYSE exchange moves more then 2% in a day. This specific rule only affects the trading of S&P 500 stocks. For a complete list go to http://invest-faq.com/cbc/exch-circuit-brkr.html.
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