An open position is any trade that has been entered but not yet closed. While open, the trade shows unrealized (floating) profit or loss.
Open vs. Closed Position
| Open | Closed | |
|---|---|---|
| P&L | Unrealized (floating) | Realized (locked in) |
| Margin | Used | Released |
| Risk | Active | None |
| Balance impact | No change | Changes balance |
Managing Open Positions
- Monitor equity and margin level
- Set stop loss to limit downside
- Set take profit to lock in gains
- Trail stops to protect profits as price moves favorably
- Avoid overtrading — too many open positions increase risk
Key Points
- Open positions tie up margin
- Unrealized P&L fluctuates with market prices
- Only closed trades affect your balance
- Always know how many positions you have open