Definition of Open Position
A trade that has been executed but not yet closed. Open positions expose you to market risk as their profit or loss fluctuates with price movements until they are closed.
At a glance
Term
Open Position
URL slug
open-position
Category
General
Short answer
A trade that has been executed but not yet closed.
Deep dives
Full A–Z glossary
Example
Apply the definition: restate “Open Position” in one sentence tied to your next trade (symbol, direction, size, stop). If you cannot, re-read the definition above.
Common mistake
Common mistake: using “Open Position” as loose slang while your broker/platform specification defines it more narrowly.
Professional tip
Tip: bookmark this “Open Position” page and reopen it when reading broker specs so definitions stay consistent.
Practice tools:
Related terms
FAQ
A trade that has been executed but not yet closed.
Knowing the precise definition of “Open Position” prevents platform and broker-spec mistakes—a common source of size and cost errors.
Common mistake: using “Open Position” as loose slang while your broker/platform specification defines it more narrowly.