What is a market gap? – Vantage

In currency trading, ‘gapping’ typically occurs when the currency reopens for trading after a weekend/rollover. Gapping occurs when the prices of a product suddenly shift from one price to another, as a consequence of market volatility and low liquidity in the market.

There may not always be an opportunity for you to place an order or for the platform to execute an order between the two price levels. One of the effects of this may be that stop-loss orders are executed at unfavourable prices, either higher or lower than you may have anticipated, depending on the direction of your trades.

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