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Quantitative Finance · Glossary

What is Static and dynamic price bands?

Also known as: static price band · dynamic price band

Definition 25.1 Microstructure and Execution · Chapter 25 — Circuit Breakers and Halts

A static price band limits trading to a range around a fixed reference (the previous close, the opening price) for the session. A dynamic price band limits it to a range around a reference that follows recent trades, such as their average over the last minutes.

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