Definition: An open order is a buy or sell order for a currency pair, stock, commodity, or other financial instrument that has been placed but not yet executed or canceled. Open orders remain active until they are either filled at the specified price, canceled by the trader, or expire according to the order’s terms.
Understanding and managing open orders is crucial for effective trading. By regularly monitoring their open orders, traders can ensure that their trading strategies are being executed as planned, make timely adjustments in response to market conditions, and avoid unintended positions. Proper management of open orders helps in maintaining control over trading activities and optimizing potential returns.
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