Open Orders: A 2025 Guide for Australian Investors

In the fast-moving world of investing, timing is everything. Whether you’re trading ASX shares, ETFs, or dabbling in global markets, the way you place and manage your orders can make a real difference to your outcomes. One term every investor should understand in 2025 is the ‘open order’. But what exactly does it mean—and why does it matter for your portfolio?

What Is an Open Order?

An open order is a buy or sell instruction placed with a broker that remains active until it’s either executed, cancelled, or expired. Unlike a market order, which is fulfilled immediately at the best available price, an open order typically involves setting specific conditions—like a limit price—that must be met for the trade to go through.

• Example: If you want to buy 500 shares of a mining stock at $3.10 or less, you might place a limit order at that price. Until the market hits $3.10, your order remains ‘open’.

• Open orders can also include stop-loss or stop-limit orders, where the trade only executes if the price moves to a certain threshold.

In 2025, Australian brokers such as CommSec, SelfWealth, and IG Markets offer a range of open order types, letting investors tailor their strategies to market conditions.

Why Open Orders Matter in 2025

The ASX and global markets have seen increased volatility in 2025, driven by ongoing shifts in interest rates, global economic trends, and the continued influence of algorithmic trading. Open orders give investors flexibility to:

• Set buy or sell targets and avoid emotional, spur-of-the-moment decisions

• Automate trades to capture opportunities outside normal trading hours

• Manage risk by placing stop-losses to limit downside

• Reduce the need for constant market monitoring

For example, with Australia’s cash rate stabilising at 3.6% in 2025 and inflation moderating, many investors are using open orders to position themselves for both defensive and opportunistic trades. If the market swings rapidly, a well-placed open order can help you avoid missing out or paying too much.

How Open Orders Work: Practical Considerations

When placing an open order, you’ll need to decide on several key factors:

• Order Type: Choose between limit, stop, or stop-limit orders based on your goals.

• Expiry: Most brokers let you set how long your order stays open. Common options are “Good Till Cancelled” (GTC) or “Good for Day”. Some platforms in 2025 also offer custom expiry dates.

• Partial Fills: Be aware that your order might be partially filled if there isn’t enough liquidity at your target price. The remainder stays open until filled or cancelled.

• Fees: While many Australian brokers have reduced trading commissions in 2025, check for any charges related to open or inactive orders.

Real-world example: Suppose you’re watching a tech stock that’s trending down after a quarterly report. You believe it’s undervalued at $14.00, so you place a limit buy order at that price. The order sits open on your broker’s platform. If the price drops to $14.00—even if you’re not watching the market—the trade executes. If not, you can cancel or modify the order as needed.

Risks and Tips for Managing Open Orders

While open orders offer convenience and control, they’re not without risk. Market gaps, sudden news, or low liquidity can all lead to unexpected outcomes. In 2025, with market-moving events happening overnight (especially for global stocks or ETFs), open orders may execute at times when you’re not monitoring the market.

• Review open orders regularly—especially after major announcements or market shifts.

• Use stop-losses to protect against sharp declines, but be mindful of ‘stop-loss hunting’ by high-frequency traders.

• Set realistic expiry dates to avoid forgotten or stale orders.

With several ASX-listed companies announcing dividends and earnings in Q2 2025, it’s especially important to track any open orders around these dates, as prices can swing significantly on news.

Open Orders and Tax Implications

It’s worth noting that open orders themselves don’t have tax consequences, but any executed trade does. If you’re an active investor, keeping records of order placements, fills, and cancellations is crucial for accurate reporting—especially with the ATO’s ongoing focus on share trading activity in 2025.