When a stock or cryptocurrency opens at a significantly different price than its previous close, investors face what’s known as a “gap” in the market (^DJI, ^IXIC, ^GSPC). These price discontinuities can have meaningful implications for investment portfolios.
Yahoo Finance Markets & Data Editor Jared Blikre breaks down this phenomenon, examining the significance of gaps for different investment strategies, the mechanics of how gaps “fill”, and how trading session timing can affect outcomes for passive investors.
To watch more expert insights and analysis on the latest market action, check out more Catalysts here.
This post was written by Angel Smith
