Gap up/gap down how does it work ?

#13
No offence dude ...
Apologies , If i have hurt you .

I found the question interesting that why got into the thread .
but to be very frank your answer was not clear .
i mean I'm still not able to figure out why the market opens with a gap up or down .

I'll be glad if someone could answer it .
 
#14
No offence dude ...
Apologies , If i have hurt you .

I found the question interesting that why got into the thread .
but to be very frank your answer was not clear .
i mean I'm still not able to figure out why the market opens with a gap up or down .

I'll be glad if someone could answer it .
 
#16
Gaps were created based on the index called sgx nifty.You can see the index on tv screen any time.

Sgx nifty is traded approx 4 hours after our market is closed, and it starts trading before our market opens.

nifty index will run parallel to this index only.

Big people were trading in this index ,and they will adjust or hedge their positions in this index
according to the global events.



Why this concept is introduced?.

Retail has to suffer and big people has to get rich and rich.
 

iyerboi

Active Member
#19
Before market opens for the day, bids are invited and based on the same market index position is determined for beginning the day's trade.

our markets close at 330 and by the time it opens next day at 915, events may have taken place tat make one ready to buy a particular security at a higher or lower rate compared to previous close. these orders are only indicative - it amounts to conveying willingness to buy or sell a security at a particular rate.

There are times whn pre open shows a positive opening whereas actual open is negative. similarly vice versa. thus pre open is a guide for the day to come but not ne. cessarily correct. Actual trades get executed only after actual open.

Hope this gives an idea. ofcourse our seniors would be able to refine it.
 

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