Gap in the overseas exchange market just signifies a disruption among two different pairs of currency where no type of trading takes place. As the forex trading market is a twenty four hour trading market and totally liquid, these types of gaps are seen rarely.
Example of Forex Trading Market Gap
Do you remember the morning of Sunday when the news reports were emerged that had been captured by Saddam Hussein? The financial market was shut for weekend but was set to remain open during evening of Sunday. On this particular occasion, the USD/EUR pair of currency opened with a gap of one hundred and thirty pips down.
Illustration mentioned below is regarded in the form of a visual prompt that whatever is the market or understanding of the market, though far between, you will come across several pockets of unique volatility where the dealers get the off sides.
This, linked with the market stock, can cause temporary liquidity scarcity and sharp cost movement which is out of question what general statistical modeling can guess.
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