Skip to main content
Learn

Why Is Gap Risk Higher during Weekend Trading in Traditional Finance Compared to 24/7 Crypto Markets?

Traditional finance has structural gap risk due to weekend closures; 24/7 crypto markets eliminate this closure-based risk.
Greeks.Live23.11.25

Why Is Gap Risk Higher during Weekend Trading in Traditional Finance Compared to 24/7 Crypto Markets?

Traditional financial markets (stocks, indices) close for the weekend, creating a period of non-trading. If significant news or events occur during this closure, the market will "gap" upon reopening to reflect the new information.

Crypto markets trade 24/7, so information is priced in continuously. While crypto can still gap due to low liquidity, the structural gap risk inherent in a weekend closure is eliminated.

Does the MTM Process Eliminate All Systemic Risk?
Can Hedging with Derivatives Eliminate All Financial Risk?
How Does a “Stop-Loss” Order Interact with Gap Risk?
What Is the Difference between ‘Soft Liquidation’ and ‘Hard Liquidation’?

About

Contact

Editorial Policy

Terms of Service

Privacy Policy

Cookie Policy

© 2025 Greeks.Live

All Rights Reserved

Greeks.Live RFQ

Build by Noo on Engine

Source: The content on this website is produced by Greeks.live's proprietary analysis systems, which utilize advanced Large Language Models (LLMs). This information might not be subject to a full human review before publication and may contain errors.
Responsibility: You should not make any financial decisions based solely on the content presented here. We strongly urge you to conduct your own rigorous due diligence and to consult a qualified, independent financial advisor.
Purpose: All information is intended for informational purposes only. It should not be construed as financial, investment, trading, or any other form of professional advice. News and data are not trading signals.
Risk: The cryptocurrency, derivatives, and options markets are highly volatile and carry significant risk. By using this site, you acknowledge these risks and agree that Greeks.live and its affiliates are not responsible for any financial losses you may incur.