An open order is an instruction to buy or sell commodities that have not been completed or cancelled. The trader has the flexibility to place an order to buy or sell securities that remain in effect until their actual condition has been fulfilled. Because they are often unconfirmed and are not market orders, so they are subject to late executions. Sometimes, the absence of market liquidity for particular security could also a reason for an order to remain open.
Usually, open orders are limit orders to buy or sell that offer investors a bit of freedom, particularly in price. The traders are ready to wait for the price that they set before the order is executed. The traders also select a specific timeframe that the order will stay active for the determination of getting filled. If an order does not get filled during the indicated duration, then it will be disabled and said to have expired.
Open orders involve a high level of risk if they open for an extended period. The most significant risk is that price of a specific security can move quickly in an adverse direction in response to a new event. The sufficient means to evade these risks is to analysis all open orders each day or make sure to close all available orders at the end of each day like day traders.