Definition of Gap
A sharp jump in price where no trading occurs between two consecutive periods. Gaps typically happen at the weekly market open (Sunday/Monday) after weekend news events. Prices may "gap up" or "gap down."
At a glance
Term
Gap
URL slug
gap
Category
General
Short answer
A sharp jump in price where no trading occurs between two consecutive periods.
Deep dives
Full A–Z glossary
Example
Apply the definition: restate “Gap” in one sentence tied to your next trade (symbol, direction, size, stop). If you cannot, re-read the definition above.
Common mistake
Common mistake: using “Gap” as loose slang while your broker/platform specification defines it more narrowly.
Professional tip
Tip: bookmark this “Gap” page and reopen it when reading broker specs so definitions stay consistent.
Practice tools:
Related terms
FAQ
A sharp jump in price where no trading occurs between two consecutive periods.
Knowing the precise definition of “Gap” prevents platform and broker-spec mistakes—a common source of size and cost errors.
Common mistake: using “Gap” as loose slang while your broker/platform specification defines it more narrowly.