The Truth About Trading: Gapping

Tony Michaels

The Truth About Trading: Gapping: "In the Stock world, there is a dynamic known as Gapping. What most people do not know is that when the exchanges close at the end of each d..."

In the Stock world, there is a dynamic known as Gapping. What most people do not know is that when the exchanges close at the end of each day, the institutions are still doing business.Gapping is what occurs when the price of a stock goes up or down at a time of day when you cannot get out of your position. A stock can gap up or down overnight so depending on whether you are long or short it can help you or hurt you. This is something that swing traders should be aware of.

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