What is a Market Gap?

When a market is closed (for example, during weekends or daily market breaks), there are no rates being traded. However, news and announcements still affect the markets. It is possible that the market will open at a rate which is significantly different from the previous closing rate due to the changes in demand. We encourage all traders to take this into consideration before opening positions or orders.

 

For a more detailed explanation, please see this blog post.