> For the complete documentation index, see [llms.txt](https://docs.avantisfi.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.avantisfi.com/trading/market-hours/price-gaps.md).

# Price Gaps

#### Caution: Price Gaps

An important risk associated with the real-world assets is the potential for price gaps. A price gap occurs when the market opens at a significantly different price level than where it closed.

This can happen due to various factors, such as:

* When economic data is released – particularly if it contains data that the market isn’t expecting
* As major news events are announced, particularly global and/or unexpected news
* When trading resumes after a weekend or holiday—especially if major news is announced in that period

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As a practical example, our team found that on average, EUR-USD had an absolute price gap of 0.40% over the last year. This means that as a trader if you were using 10x leverage on a long EUR-USD position, and the price moved down 0.40% the next day, the effective PnL impact would be -4.00%! If your stop loss was set at -3.00%, it would not execute there, it would instead execute at -4.00%
{% endhint %}

Price gaps can cause significant losses or gains for traders who have open positions. Exact stop losses and take-profits cannot be guaranteed because of these price gaps (as a certain stop loss or take profit might be "skipped" because of the gap, effectively filling at a different price than expected). We recommend exercising caution while keeping trades open after market hours (especially because leverage can amplify gains or losses). 

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Stop losses and take-profits cannot be guaranteed at the requested price, because of price gaps (as a certain stop loss or take profit might be "skipped" because of the gap in opening versus closing price, effectively filling at a worse price). We recommend exercising caution while keeping trades open after market hours to prevent unexpected gains or losses
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