An order to buy or sell an asset that has not been completely executed because the price or quantity specified was unavailable in the market is considered incomplete. For example, an investor seeks to purchase 100 shares of a company at $50 per share, but only 75 shares are available at that price. The remaining 25 shares represent the portion of the order that remains open.
Understanding the state of pending transactions is critical for effective risk management and strategic trade execution. Awareness of these situations enables traders to adjust their strategies in real-time, potentially minimizing opportunity costs or avoiding adverse price movements. Historically, monitoring these open requests required manual intervention, a process now largely automated by modern trading platforms.