Shock Absorber
A temporary restriction placed on the trading of index futures because of substantial intraday decreases in the underlying indexes. Investopedia Says:
Shock absorbers are very similar to circuit breakers. However, these restrictions are more specific as they isolate a single index and are enacted at a tighter level. The shock absorbers restrict trading and provide a period of information and pricing absorption for the holders of index futures contracts. Related Terms:
Circuit Breaker
Collar
Index
Index Futures
Intraday
Trading Halt |