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@ OΞHI ⚡️🧡
2025-02-28 16:20:48
Use Perplexity . Ai for these questions.
Imagine you have a toy store that opens Monday to Friday but closes on weekends. During the weekend, kids in the neighborhood are still talking about a super cool new toy, and everyone decides they want it. So, by the time your store opens again on Monday morning, the price of the toy has gone up because so many people want it.
Here’s how it works in numbers:
On Friday, before your store closed, you were selling the toy for $10.
Over the weekend, everyone got excited about the toy, and when your store opens Monday morning, people are willing to pay $15 right away.
There’s no trading at prices like $11, $12, $13, or $14 because your store was closed. The price just jumps from $10 to $15 when you reopen.
That jump from $10 to $15 is called a gap because there’s a "missing" part where no one traded at those in-between prices.
In the CME (Chicago Mercantile Exchange), this happens with things like Bitcoin futures because trading stops for a while (like your store closing), but Bitcoin’s price keeps moving in other markets. When CME opens again, the price skips to catch up with what happened while it was closed. That’s the CME Gap!