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What is a gap in trading and how can it affect my stop-loss orders?

What is a gap in trading and how can it affect my stop-loss orders?

A gap in trading is a sharp price movement where no trading occurs in between. Gaps typically occur over the weekend or due to major news events. If a gap occurs, your stop-loss order may not be executed at your specified level but at the next available price after the gap, resulting in larger losses than anticipated.