What is gap level

Almost every trader who uses pending orders the concept of Gap .

After a weekend or during certain events, the price makes a sharp jump and a price gap forms between quotes.

As a result, the pending order is triggered at a price that is not at all the one that was set, but significantly different.

As a rule, this is the price that first appeared after the gap, that is, the first quote after the price gap, but there is another execution option if the broker has a Gap level.

Gap level is a value in points that is set for each individual currency pair, if the value of the price gap is greater than or equal to this value, then the order is executed at the first quote after the gap. Otherwise, at the price of the pending order.

That is, if the price gap was not more than just a couple of points, then your order will be executed at the same price that was specified when it was placed.

Eg:

You have placed a pending order to buy euros for dollars on the EURUSD currency pair at a price of 1.15045, with a Gap level of 10 points.

When the price approached 1.15045, a price gap occurred and the next quote appeared with a price of 1.15050, that is, the size of the gap is only 5 points.

In this case, our pending order will still open at a price of 1.15045 since the stated Gap level was 10 points, and the price gap was only 5 points.

This indicator is important if you use pending orders and trade with high leverage , where every point is important.

Typically, the Gap level value fluctuates depending on the currency pair and can range from 8 to 40 points, and it should be noted that this tool is not used by all brokers.