Open Position

Posted in Finance, Accounting and Economics Terms, Total Reads: 1025

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.


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