Curbs In Definition & Thresholds

Curbs In Definition

Curbs in is the restriction of the trading of a security in order to reduce the volatility.  This measure is primarily used to prevent the market from falling too much during the regular trading session.  Below are the trading curbs in rules for the Dow Jones.  Curbs in are also known as circuit breakers and collar breakers.

Dow Falls 10%

If the Dow Jones falls 10% during the regular session prior to 2pm est, trading is halted on the NYSE for 60 minutes

Dow Falls 20%

If the Dow Jones falls 20% during the regular session prior to 1pm est, trading is halted on the NYSE for two hours.

Dow Falls 30%

If the Dow Jones falls 30% during the regular session, trading is halted on the NYSE for the day.