# Gap Risk

*Risk & Portfolio — Finicade finance glossary*

The danger that a price jumps straight through your stop or hedge level without trading there — leaving losses bigger than the model assumed. Overnight news and crashes are where gap risk bites.

**Related terms:** [Value at Risk (VaR)](https://finicade.com/glossary/value-at-risk), [Fat Tails](https://finicade.com/glossary/fat-tails), [Hedging](https://finicade.com/glossary/hedging)

**Taught in:** Quant Quest — CPPI Mechanics, Worked

Source: https://finicade.com/glossary/gap-risk