Curb Trading

Curb trading is a term that refers to a type of trading that takes place outside of a formal exchange, such as the New York Stock Exchange (NYSE). It typically involves buying and selling securities in a physical location on the curb or street outside of a stock exchange, with traders shouting orders and negotiating prices directly with each other.

Curb trading was popular in the early 20th century, before electronic trading and formal exchanges became the norm. At that time, many stocks were not listed on formal exchanges, and curb trading provided a way for traders to buy and sell these stocks. Curb trading was also used during times when formal exchanges were closed, such as during weekends or holidays.

Today, curb trading is much less common than it was in the past, as most trading now takes place electronically and on formal exchanges. However, some financial instruments, such as certain types of options and futures contracts, may still be traded outside of formal exchanges in a manner similar to curb trading. These types of trades are typically negotiated directly between traders or through electronic communication networks (ECNs).