Forex glossary
Price gap
A discontinuity between the end of one price segment and the start of the next. Candle construction, smoothed opens and missing data can change its appearance, so a chart alone does not establish available execution prices.
Illustrative example
How does it work in practice?
On hypothetical unsmoothed EUR/USD candles, the close is 1.1000 and the next open 1.1020 USD per EUR. With a 0.0001 pip, the gap is 20 pips; the chart does not establish intermediate fills.
A case to work through
A stop and a price jump
Model: ordinary sell stop at 1.0900; last bid 1.0910, next bid 1.0880; confirmed sale at 1.0878 USD/EUR.
- The new quote crosses the stop condition.
- The fill is 0.0022 below the stop, or 22 pips with a 0.0001 pip.
What follows? Measure the loss from confirmed execution.
Example boundary: Trigger rules depend on the product; an ordinary stop does not guarantee price.
Three different prices
Text description of the diagram
- Before the gap: Bid 1.0910 USD/EUR.
- Stop level: 1.0900 USD/EUR.
- Fill price: 1.0878 USD/EUR.
A useful distinction
Price gap / Slippage
Slippage compares plan and fill; a gap compares quote segments.
Check your understanding
Separate a price event from the execution result.
Show the answer and explanation
1.0900 − 1.0878
That compares stop level with actual fill.
Orders, prices and execution quality
Step 6 / 11 · 0 / 11 reviewed
View the full sequence →Progress is saved only in this browser.
Read the fuller explanation
Related terms
Sources and documentation
- MetaTrader 5: basic trading principles
Orders, deals and positions; FOK, IOC and partial-filling policies.
Document read:
The example illustrates the mechanism. Check current account conditions and instrument specifications with the provider.