Gap Risk

外汇网2021-06-19 13:35:19 181

The risk that an investment's price will change from one level to another with no trading in between. Usually such movements occur when there are adverse news announcements, which can cause a stock price to drop substantially from the pvious day's closing price.

Taobiz explains Gap Risk

For example, gap risk is the chance that a stock's price closes at $50 and opens the following trading day at $40 - even though no trades happen between these two times.

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