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← Glossary · Charts and indicators

Gap

A jump in the chart: the price opens well above or below the previous close.

A gap appears when no trading happened between one day's close and the next day's open, yet the price is very different. Typical triggers are quarterly results or news after the close.

It matters because a stop-loss in a gap does not sell at your level but at the first available price, so the loss can be larger than planned.

Related terms

Not investment advice. Investing carries risk up to total loss.