Open Order
Candlefocus EditorThe limit price is the most common condition included in open orders. When a trader places an open order, they will specify a buy or sell price at which they are willing to complete the order. This price is referred to as the limit price and as long as the current market price is above or below the limit price, the order will remain open. If the price in the market moves toward the limit price and touches it, the order will be filled and completed.
There may also be other conditions included in an open order. For example, the size of the order may be specified. If a trader wants to buy only 500 shares, they can place an open order with a specified number of shares that should be filled in the order. Additionally, a time limit can be set for orders so that the order will be cancelled automatically after a certain period if it is not filled.
Open orders are an important part of stock market trading. They allow traders to specify conditions that must be met before completing their order. This means that a trader can insure that they will buy or sell a stock at a certain price they are comfortable with, rather than settling for the market price. This helps to avoid paying an excessive premium on a stock purchase or selling at a loss. Open orders also provide traders with some control and flexibility over the time of execution and the size of their purchase or sale.