shock absorber

Definition of "shock absorber"
  1. 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
How to use "shock absorber" in a sentence
  1. When there was a sudden drop in stock index futures prices, the shock absorber kicked in to stabilize the market.
  2. The trading of the stock was temporarily halted by the shock absorber after a significant decrease.
  3. Shock absorbers are implemented to provide traders an opportunity to process new data after a sharp decline.

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