Legal Definitions - open order

An open order refers to an instruction or request that has been placed but has not yet been fully executed, completed, or canceled. It remains active and awaiting fulfillment, delivery, or resolution.

• Example 1: Stock Market Trading
  Imagine an investor, David, wants to buy 50 shares of "Tech Innovations Inc." stock, but only if the price drops to $150 per share. He places a "limit order" with his brokerage. Until the stock price reaches $150 and his shares are purchased, or until he decides to cancel it, this instruction remains an open order. It's an active request waiting for specific market conditions to be met for its execution.

• Example 2: E-commerce and Retail
  A customer purchases a new smartphone from an online electronics store. After the payment is processed, the store's system shows this as an open order. It will remain an open order until the smartphone is picked from the warehouse, packaged, shipped, and delivered to the customer, at which point the order is considered fulfilled and closed.

• Example 3: Manufacturing and Supply Chain
  A furniture manufacturer regularly orders a specific type of wood from a timber supplier. They place a large order for 1,000 planks, to be delivered in four batches of 250 planks each month. After the first two batches have been delivered, the remaining 500 planks still awaiting delivery constitute an open order. The initial instruction is still active and partially unfulfilled, requiring further action from the supplier.