- A temporary limit on specific stock index futures trading to counter substantial intraday decreases. This pause allows time to process new market data. Its restrictions are usually market-specific and more strict than circuit breakers
- When there was a sudden drop in stock index futures prices, the shock absorber kicked in to stabilize the market.
- The trading of the stock was temporarily halted by the shock absorber after a significant decrease.
- Shock absorbers are implemented to provide traders an opportunity to process new data after a sharp decline.