Open Position

Filed Under »
Dictionary Says

Definition of 'Open Position'

In investing, any trade that has been established, or entered, that has yet to be closed with an opposing trade. An open position can exist following a buy (long) position, or a sell (short) position. In either case, the position will remain open until an opposing trade has taken place.
Investopedia Says

Investopedia explains 'Open Position'

For example, an investor who owns 500 shares of a certain stock is said to have an open position in that stock. When the investor sells those 500 shares, the position will be closed.

Buy-and-hold investors generally have one or more open positions at any given time. Short-term traders may execute "round-trip" trades; a position is opened and closed within a relatively short period of time. Day traders and scalpers may even open and close a position within a few seconds, trying the catch very small, but frequent, price movements throughout the day.

Articles Of Interest

  1. What is a stock ticker?

    A stock ticker is a report of the price for certain securities, updated continuously throughout the trading session by the various stock exchanges. A "tick" is any change in price, whether that ...
  2. Institutional Investors

    Learn more about the advantages that financial institutions enjoy when buying and selling securities.
  3. Weighted Average

    Learn how to weigh the relative importances of data points in a calculated average.
  4. Bid-Ask Spread

    Find out more about this frequently referenced, but often misunderstood, term used to describe the price at which a stock is bought or sold at.
  5. Why Is Liquidity Important?

    Learn more on why liquidity is important to consider when examining a stock, next to its share price.
  6. Understanding The Ticker Tape

    We explain the meaning and use of that reel of symbols whizzing across your TV or computer screen.
  7. Whisper Numbers: Should You Listen?

    These unofficial forecasts hold the potential for insider insight - and investment risk.
  8. Translating Ticker Talk

    Stock tickers can say a lot about a company in just a few letters. Find out how to read them.
  9. The Dow Jones Industrial Average

    Learn how this price-weighted index performs and the ways to interpret its movements.
  10. Who Owns The Stock Exchanges?

    As M&A heats up among the exchanges, here's how the market currently looks.
comments powered by Disqus
Marketplace
Hot Definitions
  1. Xenocurrency

    A currency that trades in markets outside of its domestic borders.
  2. Wanton Disregard

    A standard of severe negligence. Wanton disregard is a very serious accusation that indicates that a person behaved extremely recklessly.
  3. Ultra ETF

    A class of exchange-traded funds (ETF) that employs leverage in an effort to achieve double the return of a set benchmark.
  4. Toehold Purchase

    A purchase of less than 5% of a target company's outstanding stockmade by an acquiring company. A toehold purchase of just under 5%, while not a significant stake in a firm, allows the shareholders a "toe-holds" grip on the company and its decision making.
  5. Samurai Bond

    A yen-denominated bond issued in Tokyo by a non-Japanese company and subject to Japanese regulations.
  6. Chartalism

    A non-mainstream theory of money that emphasizes the impact of government policies and activities on the value of money.
Trading Center
http://sp.fastclick.net/ad/tr/10858-64082-15546-0?mpt=26b2d921bc57eb8c11e7175094cf5756