DEFINITION of Open
Open can mean daily open of some exchange and, also an order or position that has not yet been filled or closed.
WHAT IT IS IN ESSENCE
There are several definitions refer to word ‘open’ within investing.
On market
This represents the beginning of trading on an exchange each day. Market opens differ between exchanges and time differences can be a big factor.
For instance, The New York Stock Exchange is open from 2.30pm to 9 pm in GMT. The London Stock Exchange is working from 8 am to 4.30pm UK time.
In connection with orders
They are orders that have not yet been executed or filled. The length of time that an order can remain open for, and stipulations involved in filling it, vary between different types of orders.
Day orders, for instance, can remain in that position for a single trading day.
Good-’til-canceled orders can stay in such position indefinitely.
An open position is a current position that has not yet been closed.
HOW TO USE
The opening of a position, or entering the market, is the first buying or selling of a certain amount of the security traded.
The trader can take this position either by execution of a market order or by the automatic triggering of a pending order.
In online trading, this position refers to the state of a trade after a trader has entered the market.
To be in such a position means that the trader holds a certain quantity of a given financial instrument.
An order may remain un-closed when an investor places conditions on their transaction. Such as a price minimum. If the condition is not met, the order remains “open.” While a market order is executed immediately, such order may take time to fill or may remain unfilled.
It is important for the investor to monitor market conditions and keep track of their orders and be sure that each order should remain in effect and be filled over time.