To reduce market volatility, ________ require that a key computer is turned off so that program trading must be done "by hand" rather than automatically by computer.

Question

Quizplus · Accepted Answer

Trading curbs are put in place to reduce or halt trading activity when the market experiences significant volatility. One type of trading curb is the "circuit breaker," which temporarily halts trading in response to a certain percentage decline in the market. This pause in trading allows investors to reevaluate their positions and potentially reduce market volatility. Some trading curbs also require that program trading be done manually rather than automatically by computer, which can help limit the impact of automated trading strategies on market movements.

To Reduce Market Volatility, ________ Require That a Key Computer