air pocket Hear it!

air pocket definition - finance
A sharp drop in the price of a stock or a futures or option contract in response to unexpected negative news gaps. Often air pockets are indicated on a price chart by a discrepancy between the previous dayÂ’s closing price and the next dayÂ’s price.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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