Gap
a.k.a. Price gap, Weekend gap
A jump between one candle's close and the next one's open, where no trading happened at the prices in between.
A gap is a hole in the chart. Price closes at one level and opens at another, skipping everything in between. In forex this mostly happens over the weekend, when news piles up while the market is shut.
Gaps are dangerous for stops: a stop-loss can be filled at the open price, far worse than where you set it. Some traders expect gaps to 'fill', meaning price returns to the old level, but there is no rule that it must.
Holding a big position over the weekend assuming your stop will save you at its exact price.
Keep this word for good
Your free Private Swap Lounge saves the terms you’ve learned and quizzes you on them. Portal under construction. Expected delivery date is December 01, 2026.
