Replies to post #163391 on The Question and Answer Board (IHUB)

[SEW]

People place orders to buy/sell during the off hours (before the open), this will change the different MM's ask and bid on the L2.
You can watch the L2 getting setup for the open in the couple minutes before the bell.

[Churak]

Newly2b is most definitely a cool guy but I find he gets irritated easily...

[Newly2b]

Does this follow then that there will never be a
gap up/down to worry about on an OTC stock from one day to the following ?

No, it does not guarantee there will never be a gap open on an OT stock because gaps are based on actual filled trades. Most orders are Day orders and if unfilled before the close are automatically cancelled at the end of each trading day and not carried over to the next open unless they are GTC (Good Til Cancelled) orders.

So, if, for example, some terrible news is released overnight on that OTC-stock company, no one is likely to put in a bid to buy it at the previous day's level, and if there are no bids, there will be no filled trades until sellers' lower their ask and someone takes it, creating a gap down open. Same can happen with a gap up open.

Newly

PS Thanks for your kind comments.