Looking for Open Position?
An open position in investing is any established or entered trade that has yet to close with an opposing trade. An open position can exist following a buy, a long position, a sell, or a short position. In any case, the position remains open until an opposing trade takes place.
Open Position Defined
For example, an investor who owns 500 shares of a certain stock is said to have an open position in that stock. When the investor sells those 500 shares, the position closes. Buy-and-hold investors typically have one or more open positions at any given time. Short-term traders may execute “round-trip” trades; a position opens and closes within a relatively short period. Day traders and scalpers may even open and close a position within a few seconds, trying to catch minimal but frequent price movements throughout the day.
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