MarketWhat are value stocks? A value company is a company that app... More gaps are most often created between trading sessions, such as during the night or over the weekend. A simple example would be a company surprisingly announcing its bankruptcy on a Saturday – traders would panic, and the opening price on Monday could open below the closing price on Friday.
This example shows that market gaps can be created by changes in the , often caused or fuelled by changes.
Such fundamental changes include surprises to the financial marketA financial market is a type of market where traders, corpor... More, such as natural disasters, political turmoil, acts of terrorism or simply a high impact news event.
The gap does not necessarily occur during the overnight period when markets are usually closed – it can also happen on a shorter .
