Thailand has been hit with tariffs of 36 percent on exports to the United States -- its biggest market, with a trade surplus of around $45 billion.
Thailand's stock exchange banned short-selling on most equities on Monday, despite being closed for a holiday, after global markets went into freefall over an escalating trade war.
A rout of stock markets around the world deepened on Monday and fears of recession rose after China retaliated against US President Donald Trump's tariffs and Europe pondered its response.
Thailand has been hit with tariffs of 36 percent on exports to the United States -- its biggest market, with a trade surplus of around $45 billion.
The Stock Exchange of Thailand (SET) said on Monday short-selling of all but market-maker stocks would be banned until April 11, while the trading bands of equities would also be limited.
Short-selling is when an investor borrows a stock at a certain price to sell, expecting they can buy it back in the future at a much lower price.
The SET said it believed the temporary measures would "support the stability of the market and investor confidence".
The trading band for most stocks have also been halved when the market reopens on Tuesday, with SET equities going from 30 percent to 15 percent and foreign lists from 60 percent to 30 percent.
The SET index closed at 1,125.21 on Friday, down 3.15 percent on the day and compared to recent highs of around 1,400 before Trump was inaugurated in January.
The SET did not rule out further restrictions.
"The Stock Exchange of Thailand will monitor the daily situation and will adjust measures with the current situation," a statement said.
Prime Minister Paetongtarn Shinawatra said last week Thailand had a "strong plan" to handle the swingeing new trade tariffs and hoped to negotiate a reduction.
© Agence France-Presse
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