Curb Trading

Curb trading refers to the trading of stocks, commodities, or other securities outside of regular exchange hours or outside of a formal exchange setting. Historically, curb trading occurred on the streets outside the New York Stock Exchange after hours, but today it refers to after-hours or off-exchange trading. Curb trading can occur electronically or in over-the-counter markets, allowing traders to respond to news or market events that occur outside normal trading hours.

Example

An investor might engage in curb trading after the market closes to react to breaking news that could affect stock prices the following day.

Key points

• Curb trading refers to trading that takes place outside regular exchange hours or off the formal exchange.

• It allows traders to respond to market events outside of normal trading hours.

• Curb trading can occur electronically or in over-the-counter markets.

Quick Answers to Curious Questions

What is the purpose of curb trading?

Curb trading allows investors to buy or sell securities outside of regular exchange hours, often in response to breaking news or significant events.

Where does curb trading occur?

Historically, curb trading took place outside formal exchanges like the NYSE, but today it occurs electronically in after-hours markets or over-the-counter markets.