An Open Order is an un-filled, or working order that is to be executed when a certain requirement has been met before it can be cancelled by the customer or expires. Open orders are used in financial markets and allow customers to place orders for buying and selling securities without having them immediately filled. This type of trading allows investors more flexibility as they can set conditions such as price limits, time frames, and other criteria which must first be satisfied before their trade will go through.Open orders provide traders with greater control over their trades since they don’t have to worry about being caught off guard by sudden market movements that could otherwise cause them losses if not handled correctly.For example, a trader may want to buy shares at a specific price but does not want the transaction completed until after certain news has been released regarding the company's performance; this would require setting up an open order so that it only executes once those conditions have been met.Additionally, these types of trades also help reduce risks associated with manual execution errors due to human error or miscommunication between parties involved in the transaction process.In conclusion, open orders offer traders increased control over their investments while also helping protect against potential losses caused by unforeseen market changes or manual mistakes during trade execution processes; thus making them beneficial tools for any investor looking for added security when dealing in financial markets.
