Nothing deters a trader like a 20 per cent spread. If the market makers don’t want buyers they simply widen the spread. If they didn’t, they might be forced to deal a lot of stock they simply do not have, having failed to anticipate a surge in volume and demand – gapping the stock up makes sense for them as an act of defence. Market makers will gap up a share if they believe the stock will respond positively to an RNS, and continue its trajectory upwards. These gaps are associated with a rapid, straight. Exhaustion gap signals the end of a move. There doesn’t need to be any news for them to gap a stock up or down as they can set prices as they like, and unless we deal in one of the four daily auctions (liquidity here is poor) then we have to deal through them. If the gap is filled, they offer little forecasting significance. Stocks that trade on SETSqx can be moved up and down by the market makers. Gaps don’t just come from trading updates and RNSs, though – anything can move a stock. There could be a positive trading update or a profit warning in the early morning RNSs, both of which could move the stock up or down. Any major event that dramatically changes the value of a stock today (or its future business. The bigger the stock price gap, the more important or influential the reasoning behind it. The most common reasons price gaps occur is because of earnings and acquisitions. This occurs between the stock’s closing price and the stock’s opening price the next day. 1.6K Share 41K views 2 years ago Trading Academy: Trading 101 Are you a beginner in the stock market and and confused by the term 'gap fill' When I was a beginner to the stock market and. The result is a gap in the stock price when the market re-opens at 9:30 AM EST. A gap is self-explanatory – it is a gap in the price of a stock.
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