Opening Price

AAA

DEFINITION of 'Opening Price'

The price at which a security first trades upon the opening of an exchange on a given trading day. A security's opening price is an important marker for that day's trading activity, especially for those interested in measuring short-term results, such as day traders. Additionally, securities, which experience very large intra-day gains and losses, will have those swings measured relative to their opening price for the day.

INVESTOPEDIA EXPLAINS 'Opening Price'

Quite commonly, a security's opening price will not be identical to its closing price. This is due to after-hours trading and to changes in investor valuations or expectations of the security occurring outside of trading hours. Nasdaq uses an approach called the "opening cross," to decide on a price level that would serve as the best opening price, given the orders that have accumulated overnight.

RELATED TERMS
  1. Open

    1. An unexecuted order that is still valid. An open order is ...
  2. Closing Bell

    A bell that rings to signify the end of a trading session. The ...
  3. After-Hours Trading - AHT

    Trading after regular trading hours on the major exchanges. The ...
  4. Close

    The end of a trading session in financial markets. "Close" refers ...
  5. After The Bell

    A phrase used to describe news, earnings reports and other activities ...
  6. Opening Bell

    A bell that is rung to signify the start of the day's trading ...
Related Articles
  1. Investing Basics

    Principal Trading and Agency Trading

    Ever wonder what happens behind the scenes when you buy or sell a stock? Read on and find out!
  2. Options & Futures

    Getting To Know The Stock Exchanges

    Here are the answers to all the questions you have about stock exchanges but are too afraid to ask!
  3. Options & Futures

    The NYSE And Nasdaq: How They Work

    Learn some of the important differences in the way these exchanges operate and the securities that trade on them.
  4. Investing

    Why don't stocks begin trading at the previous day's closing price?

    Most stock exchanges work according to the forces of supply and demand, which determine the prices at which stocks are bought and sold. What this means is that no trade can occur until one participant ...
  5. Trading Strategies

    Day's First Trade Can Serve As Support/Resistance

    The first trade of the day in liquid markets defines a narrow price level that can act as support or resistance for the entire session.
  6. Options & Futures

    Trading Using Binary Options

    Discover the securities and underlying assets you can trade using binary options in the US.
  7. Trading Strategies

    How effective is creating trade entries after spotting a Sanku (Three Gaps) Pattern?

    Learn about the sanku, or three gaps, pattern including formation, interpretation and additional confirmation necessary to establish effective trades.
  8. Trading Strategies

    How do I build a profitable strategy when spotting a Rounding Bottom pattern?

    Understand the basics of the rounding bottom pattern, also known as the saucer, including formation and optimal entry and exit points.
  9. Trading Strategies

    How do I build a profitable strategy when spotting a Runaway Gap pattern?

    Understand the basics of the runaway gap and how to utilize this pattern to establish profitable trade strategies, including necessary confirmations before entry.
  10. Trading Strategies

    How effective is creating trade entries after spotting a Runaway Gap pattern?

    Understand the basics of the runaway gap and why strategies based on this signal, unlike other types of gaps, have only middling effectiveness.

You May Also Like

Hot Definitions
  1. Commercial Paper

    An unsecured, short-term debt instrument issued by a corporation, typically for the financing of accounts receivable, inventories ...
  2. Federal Funds Rate

    The interest rate at which a depository institution lends funds maintained at the Federal Reserve to another depository institution ...
  3. Fixed Asset

    A long-term tangible piece of property that a firm owns and uses in the production of its income and is not expected to be ...
  4. Break-Even Analysis

    An analysis to determine the point at which revenue received equals the costs associated with receiving the revenue. Break-even ...
  5. Key Performance Indicators - KPI

    A set of quantifiable measures that a company or industry uses to gauge or compare performance in terms of meeting their ...
  6. Bank Guarantee

    A guarantee from a lending institution ensuring that the liabilities of a debtor will be met. In other words, if the debtor ...
Trading Center