Open Trading

Posted in Finance, Accounting and Economics Terms, Total Reads: 1716

Definition: Open Trading

It means that one has opened a position by buying or selling a particular thing in the market and the trade is still in progress. It becomes a close trade once you sell what you have bought or cover what you have sold or you withdraw what you are selling.

Also in terms of banking it means that the trade has not completely taken place or settled

Example: - The cash or security has not been transferred yet. That means the transaction is not complete yet. Once you recover everything it becomes close trade.

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