Open Position

An open position refers to any trade (buy or sell) that has been executed but has not yet been closed. It is a trade that is still active in the market, either holding a profit or a loss, and awaiting an exit.

There are two types of open positions:

1. Long position (buy): trader bought an asset, expecting the price to rise. The position is "open" until they sell the asset to close the trade;
2. Short position (sell): trader sold an asset, expecting the price to fall. The position remains "open" until they buy the asset back to close the trade.

An open position affects the account's balance and equity. The value of the open position fluctuates with the market price, and its profit or loss will change in real-time based on market movements. Once the position is closed, you will have a final, realized profit or realized loss.

Whether you should keep your positions open for a short or long period depends on strategy, market analysis, and risk management plan. If you plan to keep positions open for longer, make sure to manage the risks effectively.