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Market Intelligence › Basic Terminologies
Overnight news par price opens by crossing your SL, and a lot of doors are found from the exit stop.
Published by The Retail Trader · JUL 31, 2026 · Risk Management
Gap Through SL — Overnight news par price opens by crossing your SL, and gets a lot of door from the exit stop. For this reason the overnight size is kept small.
This term comes under Risk Management, in the section "Where to put STOP LOSS". Placing stop loss and placing it at the right place are two different skills. Here are his methods and their trade-offs:
Other terms in this group — understanding them together is more useful:
• Structure-Based SL
• ATR-Based SL
• Percentage SL
• Time-Based Exit
• Volatility Stop
• Tight vs Wide SL
• SL Hunting
• SL-M in Fast Market
• No-Trade Zone
To read the entire group and all its examples at one place, see the journal "RISK MANAGEMENT: DICTIONARY OF AVOIDANCE" - this term has been taken from there.
This entry is for educational purposes only and is not a recommendation to buy or sell. Exchanges change charges, margins, lot sizes and expiry rules from time to time, so verify any figures with your broker or exchange.