An open order is an instruction to buy or sell securities that has not been executed or cancelled. Another term used is "backlog order."
How Does an Open Order Work?
An order may remain open when an investor places conditions on their transaction, such as a price minimum. If the condition is not met (e.g. the stock has not yet reached the minimum amount requested by the investor), the order remains "open."
Why Does an Open Order Matter?
While a market order is executed immediately, an open order may take time to fill or may remain unfilled. It is important for the investor to monitor market conditions and keep track of their open orders and be sure that each order should remain in effect and be filled over time.