An open position is an executed holding or contract exposure that has not yet been fully closed or settled. It remains exposed to the relevant market risks even when the trader is not placing new orders.
Open is different from pending
An open order is an instruction awaiting execution; an open position results from executed trading. A partially filled order can leave both an open position for the filled amount and a pending order for the remainder.
Suppose a trader buys a linear contract representing two tokens and later closes one token’s exposure. One token remains open. The closed portion has a realized trading result, while the remaining portion continues to gain or lose value.
What continues while it is open
A derivative position may require ongoing collateral and, for applicable perpetual contracts, funding payments. Dated contracts follow expiration and settlement rules. Unrealized profit is a current valuation, not a guaranteed exit amount.
An open position is also different from open interest, the market-wide count of outstanding contracts. To understand personal risk, examine remaining size, direction, valuation price, available collateral and any pending orders that could change the position.