Gap up and gap down

A gap is a price opening far from where it last traded, with nothing in between. US stocks gap at 7:00 PM IST because news lands after the close, results most of all, and a stop does not protect you through it. The Monday open after a weekend is the biggest gap a contract that trades all week has to bridge.

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In the help centreSee the order types available on Mochatrade
  • SlippageSlippage is the gap between the price you expected and the price you got. It comes from the spread, from a thin book…
  • Stop-limit orderA stop-limit order becomes a limit order, not a market order, at its trigger. It refuses a bad fill in a gap, and that…
  • Circuit breaker (US)A US circuit breaker halts trading. Market-wide, an S&P 500 fall of 7% or 13% stops all stocks for fifteen minutes and…
  • Market orderA market order buys or sells immediately at the best price available. It always fills, but at the ask if you buy and…
  • 24/7 trading24/7 trading means a contract keeps trading through nights, weekends and holidays while the underlying exchange is…
  • Closing auction (official close)The closing auction is the single matched trade at 1:30 AM IST, 2:30 AM in winter, that sets each US stock's official…

Educational content only. Not investment advice. Leveraged products magnify losses as well as gains.

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