Posted in Finance, Accounting and Economics Terms, Total Reads: 443
Definition: Open Order
An order or an instruction to buy or sell a security which is active i.e. which remain in effect till it is executed by the supplier or cancelled by the customer or it expires. It is an alternate term for backlog orders.
The order remains open if it is not executed because of some specified requirements example an expected price (limit order) is not met or due to lack of liquidity in the market.
A market order is executed immediately while an open order takes time for its execution or may remain unfulfilled if the conditions kept by the investors are not met. The order may expire under the terms and condition established by the broker who places it or after a duration specified by the customer.