# Price Gap

*Trading & Technical Analysis — Finicade finance glossary*

A gap is a jump between one session's close and the next session's open with no trading in between, usually caused by news released outside market hours. Gaps are the reason a stop-loss is not a guarantee: an order to sell at $50 executes at $42 if the stock opens there. The folk belief that gaps always fill is true often enough to be dangerous and false often enough to ruin someone.

**Also known as:** gap up, gap down, gap fill

**Related terms:** [After-Hours Trading](https://finicade.com/glossary/after-hours-trading), [Swing Trading](https://finicade.com/glossary/swing-trading), [Stop-Limit Order](https://finicade.com/glossary/stop-limit-order), [Circuit Breaker](https://finicade.com/glossary/circuit-breaker), [Candlestick Chart](https://finicade.com/glossary/candlestick-chart)

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