Gap Up / Gap Down
Gap Up / Gap Down covers an Execution glossary entry, profiled by proprietarytrading.com.
Execution
Gap up or gap down describes a security opening significantly higher or lower than the previous close, leaving a visible chart gap.
Gap up/down describes a security opening significantly higher or lower than its previous close, often after overnight news or earnings. For prop traders, gaps create stop-skip risk — a stop at $100 can fill at $95 if the open gaps past it.
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