DeutschWhat is Gapping?
Gapping occurs when the price of a financial instrument opens significantly higher or lower than the previous closing price, without any trading in between.
Explanation:
Gaps can occur due to various factors, including earnings announcements, changes in analyst ratings, or geopolitical events.
Practical Example of Gapping:
A stock closes at $50 on Monday and opens at $55 on Tuesday due to a positive earnings report released after the market closed on Monday.
« Back to Glossary Index