Source: https://mochatrade.com/learn/glossary/gap-up-and-gap-down

# Gap up and gap down
URL: https://mochatrade.com/learn/glossary/gap-up-and-gap-down
Last modified: 2026-10-17

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](https://mochatrade.com/learn/us-market-structure/how-us-stock-prices-form), [results most of all](https://mochatrade.com/learn/us-market-structure/us-earnings-explained), and [a stop does not protect you through it](https://mochatrade.com/support/order-types-available-on-mochatrade). The Monday open after a weekend is the biggest gap [a contract that trades all week](https://mochatrade.com/support/what-is-a-perpetual-contract-and-does-it-expire) has to bridge.

## Related terms

- Slippage: https://mochatrade.com/learn/glossary/slippage
- Stop-limit order: https://mochatrade.com/learn/glossary/stop-limit-order
- Circuit breaker (US): https://mochatrade.com/learn/glossary/circuit-breaker
- Market order: https://mochatrade.com/learn/glossary/market-order
- 24/7 trading: https://mochatrade.com/learn/glossary/24-7-trading
- Closing auction (official close): https://mochatrade.com/learn/glossary/closing-auction

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