RiskBeginner
Gapping
syn. Price Gap / Gap Risk
A sharp price movement where the market jumps from one price level to another with no trading activity in between, often occurring at market open or during major news events.
Last updated: February 10, 2026
1
Markets close for a period (weekend, holiday) while news and events continue.
2
When the market reopens, the price may be significantly different from the last close.
3
The gap represents a period where no trades occurred, so prices jump directly.
4
Stop-loss orders placed within the gap cannot execute at the stop price — they fill at the next available price.
5
Gaps can also occur intraday during extreme news events or flash crashes.