Open Order

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DEFINITION of 'Open Order'

An order to buy or sell a security that remains in effect until it is either canceled by the customer, until it is executed or until it expires. Open orders commonly occur when investors place restrictions on their buy and sell transactions. A lack of liquidity in the market or for a particular security can also cause an order to remain open.

INVESTOPEDIA EXPLAINS 'Open Order'

Market orders, which cannot have restrictions, are typically filled instantaneously, but if they remain open at the end of the day, the brokerage may cancel them. With limit orders, investors typically have to wait for the price that they set as their limit to be reached before the order can be executed. These orders will remain open either for the duration determined by the customer or until they are filled. If they remain open after several months, they may expire under the terms established by the brokerage through which the order is placed.

RELATED TERMS
  1. Limit Order

    An order placed with a brokerage to buy or sell a set number ...
  2. Open

    1. An unexecuted order that is still valid. An open order is ...
  3. Order

    An investor's instructions to a broker or brokerage firm to purchase ...
  4. Market Order

    An order that an investor makes through a broker or brokerage ...
  5. Buy

    1. A recommendation to purchase a specific security. A buy rating ...
  6. Opening Bell

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