Skip to main content
Stocks

Price Gap

A price gap refers to a phenomenon in the stock market where the opening price of a stock is significantly different from its closing price the previous day. This usually occurs when important news about the stock's value is announced after the market has closed. Factors such as positive or negative earnings reports or a buy-out can cause a gap in the stock's price. While stocks that gap at the open usually return to the previous close before moving again, this is not always the case. If the news is particularly impactful, such as projected higher earnings, the stock may continue to move without a pullback.

Related terms

Inside Information

Understand the meaning and definition of Inside Information in the context of stock market, trading, and investments.

MORE
Support Levels

Understand the meaning and definition of Support Levels in the context of stock market, trading, and investments.

MORE
Fill or Kill (FOK) Order

Understand the meaning and definition of Fill or Kill (FOK) Order in the context of stock market, trading, and investments.

MORE
Quoted Market Value (QMV)

Understand the meaning and definition of Quoted Market Value (QMV) in the context of stock market, trading, and investments.

MORE
Retractable Security

Understand the meaning and definition of Retractable Security in the context of stock market, trading, and investments.

MORE
Daily Price Limit

Understand the meaning and definition of Daily Price Limit in the context of stock market, trading, and investments.

MORE

Open Free Demat Account!

Join our 3.8 Cr+ happy customers

+91
Explore other categories
Enjoy Zero Brokerage on Equity Delivery
10 Cr+DOWNLOADS

Enjoy Zero Brokerage On Stock Investments

Get the link to download the App

Scan this QR code to download the app
Get it on Google PlayDownload on the App Store

Open Free Demat Account!

Join our 3.8 Cr+ happy customers
+91