Gap (Gap, exchange rate gap)

Gap (Gap, exchange rate gap) - a gap in the price chart, most often appearing at the moment when the currency exchange stops working (for example, on weekends), while banks and other financial organizations continue to make transactions with currencies. A gap can also be caused by important news released at a time of strong activity of market participants.

As a result, the quote of the instrument dependent on these actions changes dramatically, forming a price hike - the opening price of the current bar is very different from the closing quote of the previous bar, which can be visually seen on the price chart.

Hep - is a good opportunity for a trader to get a big profit by correctly placing positions. However, the risks in this case are greatly increased, as it is impossible to set a loss limiter in the form of StopLoss orders - jump over it, the price will close at a much more unfavorable rate.