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InvestHub.com's
Finance Dictionary and Glossary of Investment Terms

shock absorber  

Definition 1.

Any of a number of procedures implemented by a major stock or commodity exchange when a certain index falls a predetermined amount in a session, to prevent further losses. Examples include trading halts and restrictions on program trading. also called circuit breaker.
 

Definition 2.

A temporary restriction placed on the trading of index futures because of substantial intraday decreases in the underlying indexes.
 
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