Trading curb

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A trading curb (also known as a circuit breaker in Wall Street parlance) is a financial regulatory instrument that the relevant stock exchange organization implements to prevent stock market crashes. Since their inception, circuit breakers have been modified to prevent both speculative gains and dramatic losses within a small time frame. When triggered, circuit breakers either stop trading for a small amount of time or close trading early to allow accurate information to flow among market makers and for institutional traders to assess their positions and make rational decisions.

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