Open Position
A trade that has been entered and not yet closed.
An open position is a trade that is entered and not yet closed.
An open position is a trade you have entered that has not yet been closed. It carries live exposure to price and floating profit or loss until you exit. Every trade spends its life as an open position, and managing it is where risk decisions are made.
How It Works
- It carries live price exposure
- Profit or loss floats until you close it
- You manage it with stops and targets
Trading Tips
Know your risk on every open position
Set your invalidation before you enter
Review open positions against your plan, not emotion
Open Position Example
Say you buy 1 lot EUR/USD at 1.0850 and it rallies to 1.0900 while you hold. That open position floats plus $500, spendable nowhere until you sell. Close half and $250 locks into balance. The rest rides risk-free on a breakeven stop.
How Traders Use Open Position
Manage open positions by plan percentages, not feelings: scale at targets, trail behind structure, kill at invalidation. An open winner is inventory, not income. Convert it on schedule.
Related Terms
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