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Trading Ban

Definition

A trading ban is a prohibition imposed on the buying or selling of specific assets or securities within a particular market or jurisdiction. Such bans are typically enacted by regulatory authorities or exchange operators to maintain market stability, prevent fraud, or address specific risks. They can be temporary or permanent and may apply to certain types of traders or all participants. The imposition of a trading ban significantly impacts market liquidity and price discovery for the affected instruments. It represents a direct intervention in market operations.