// TRADING TERMINOLOGY

What is Gap?

A break in price action where no trading has occurred, typically between the Friday close and Sunday open.

In-Depth Explanation

Gaps often happen when major news breaks over the weekend while the market is closed. "Closing the gap" is a common trading strategy.

"The S&P 500 gapped down 2% on Monday morning due to geopolitical tensions."

A measure of how much and how quickly the price of an asset changes over time.

The ease with which an asset can be bought or sold without affecting its price.

A market condition where prices are rising or expected to rise.

A market condition where prices are falling or expected to fall.

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Knowing the terms is just the start. Learning how to apply them is where the edge is found.