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Analysis

Gap — definition & meaning

A jump in price with no trading in between, leaving a blank on the chart.

A gap is when a market opens at a very different price from where it last closed, with no trading in the space between. Gaps often follow weekend news or major announcements.

Gaps matter for risk: a stop-loss can be jumped over during a gap, filling far worse than your level. Some traders trade 'gap fills', betting price returns to close the gap, but this is far from guaranteed.

The information on Trding.io is for general information only and is not investment advice. Trading involves a real risk of losing money, and most retail traders lose. Never trade money you cannot afford to lose.

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