An open order is a buy or sell order that has not yet been filled. This type of order typically remains valid until it is executed or canceled by the trader, or, in some instances, until the end of the trading day. Open orders can persist for long durations, especially if they are not limit orders (which are orders to buy or sell a security at a specified price or better).

There are various types of open orders, including:

• Market Order: This order is to buy or sell a security at the current market price. It stays open until the trade is completed.
• Limit Order: A limit order instructs to trade a security at a specific price or better. For example, a buy limit order will only be executed at the limit price or lower, while a sell limit order will only be executed at the limit price or higher.
• Stop Order (also known as a “stop-loss order”): This order is to buy or sell a stock once it reaches a certain price, referred to as the stop price. When the stop price is hit, the stop order turns into a market order.

Open orders are an essential part of trading, as they enable traders to establish their trading strategies and wait for the market to align with their conditions, rather than needing to monitor the market continuously. However, they also necessitate careful management, as market conditions can shift quickly, and orders may be filled at unexpected times.