Opening Price

Dictionary Says

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 Says

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.



comments powered by Disqus
Hot Definitions
  1. Closed-End Fund

    A closed-end fund is a publicly traded investment company that raises a fixed amount of capital through an initial public offering (IPO). The fund is then structured, listed and traded like a stock on a stock exchange.
  2. Payday Loan

    A type of short-term borrowing where an individual borrows a small amount at a very high rate of interest. The borrower typically writes a post-dated personal check in the amount they wish to borrow plus a fee in exchange for cash.
  3. Securitization

    The process through which an issuer creates a financial instrument by combining other financial assets and then marketing different tiers of the repackaged instruments to investors.
  4. Economic Forecasting

    The process of attempting to predict the future condition of the economy. This involves the use of statistical models utilizing variables sometimes called indicators.
  5. Chicago Mercantile Exchange - CME

    The world's second-largest exchange for futures and options on futures and the largest in the U.S. Trading involves mostly futures on interest rates, currency, equities, stock indices and agricultural products.
  6. Private Equity

    Equity capital that is not quoted on a public exchange. Private equity consists of investors and funds that make investments directly into private companies or conduct buyouts of public companies that result in a delisting of public equity.
Trading Center