Question

What are outstanding orders? State any two special features of outstanding orders.

Hint:

Monitoring outstanding orders helps traders understand market sentiment and potential price movements.

Answer 1

Outstanding Orders: Outstanding orders are buy or sell orders placed by investors in the stock market that have not yet been executed or fulfilled. These orders remain active in the system until they are either executed, canceled, or expire. They represent the demand and supply pending in the market. Two Special Features of Outstanding Orders:

Pending Execution: Outstanding orders are those that have been entered but not matched or completed in the trading system.
Impact on Market Depth: They contribute to the order book, showing the liquidity and price levels at which buyers and sellers are willing to transact.