Open Position
Posted by Ripon Abu Hasnat on Friday, June 13, 2014 | 0 comments
In investing, any trade that has been
established, or entered, that has yet to be closed with an opposing trade. An
open position can exist following a buy (long) position, or a sell (short)
position. In either case, the position will remain open until an opposing trade
has taken place. 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 will be closed. Buy-and-hold investors generally
have one or more open positions at any given time. Short-term traders may
execute "round-trip" trades; a position is opened and closed within a
relatively short period of time. Day traders and scalpers may even open and
close a position within a few seconds, trying the catch very small, but
frequent, price movements throughout the day.
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