Open Order
An order that has been accepted by the exchange but not yet executed, cancelled or expired.
How it is identified
Test: the order rests in the book with unexecuted quantity remaining and validity not yet lapsed
Unit
qualitative
In depth
Open orders consume margin and represent real commitments — a forgotten limit buy can execute days later on a price fall the trader had stopped watching. Because Indian equity orders are day-valid by default, they die at the close, but GTT instructions held at the broker do not, and those are the ones most often forgotten. An open order also occupies queue position, which is lost if it is modified. Reviewing the open order book before the close is basic hygiene that prevents most unintended positions.
Worked example
A limit buy for 1,000 shares fills 300 and leaves 700 open. Margin continues to be blocked against those 700 until the order is cancelled or the session ends, even though the trader considers the position taken.
Illustrative figures, chosen so the arithmetic is easy to follow. Not a live price and not a valuation of any company.
Educational reference only
This entry explains what “Open Order” means. It is not investment advice and not a recommendation to buy or sell any security. Any numbers above are illustrative, not live prices, and nothing here predicts price direction or rates a stock. Consider your own circumstances and consult a SEBI-registered investment adviser before acting.