Posted in Finance, Accounting and Economics Terms, Total Reads: 435
Definition: Open Position
A trade market involves the buying and selling of shares. Now for a trade to take place, there should be a buying party and a selling party and there should be a balance of money involved. An open position is when a share is entered into the market but with no opportunity for an opposing trade.
For example, if a trader possesses 30 shares that he wants to sell in the market for 10 rupees each. Until and unless he finds a buyer to buy the shares at the same price, we say that the shares are in an open position.
For in a general context, there will be many opposing parties available. And there are also who deal with the operations in a single day (day traders). They make most of the revenue through these intra-day operations.