Could you explain the trading curbs that I am now hearing about? Are they triggered electronically; are they for individual stocks or indices as a whole? (September 20, 2001)

  Trading curbs apply to the NYSE. It restricts program trading when there is an abrupt move in the Dow Jones Industrial Average. When the Dow moves 200 points higher or lower than the previous session's closing price, the restrictions kick in. They stay in place until the Dow returns to within 100 points of the prior close or the session itself closes.

What it means to trading. The curbs prevent buying unless on a downtick in the market, and they prevent selling until there is an uptick in the market. In other words, you cannot buy unless the current trade on whatever you want to buy is at a lower price than the prior trade, and to the downside, you cannot sell unless the current trade is at a higher price than the preceding trade.

There can be a time when trading is stopped altogether. Generally this occurs when the Dow drops by 10% (trading halted for an hour); 20% (trading is halted for two hours); and 30% (trading is halted for the day).

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