An intention is not yet a trade
Deciding to buy, submitting an order and receiving a fill are separate steps. After submitting an instruction, inspect its status before repeating it. A pending order may remain active while another order has already changed the position.
A market order seeks execution without setting a maximum or minimum price. A limit order defines an acceptable price but may remain unfilled. A stop uses an activation threshold; its behaviour afterwards depends on the specific order type and the intermediary’s rules.
Track the quantity
Synthetic example: you request two units and only one is filled. The position is one unit; the remaining quantity depends on the order’s status. Confusing requested and executed quantities can produce an incorrect exit or additional exposure.
Reviewing a transaction requires the side, quantity, time and price of each fill. Several fills can open or close a position. Cancelling a pending order does not automatically close an existing position.
Practise before adding speed
Use only order types supported by the exercise. A simplified demonstration may apply different execution assumptions from the real market; read them before interpreting the outcome. Repeat the sequence slowly until you can explain every state.
- State what remains pending and what has already been filled.
- Check the position and orders after every action.
- Finish by verifying that no unexpected position or order remains.
Check your understanding
ACTIVITY · AT YOUR OWN PACE
Apply the idea before continuing
Write your answer before opening the reasoning. All prices, quantities and outcomes in this activity are hypothetical. Keep your explanation in your own notebook; it is not sent to the server.
The case
You submit a limit buy for 3 units. One fills and 2 remain pending. You then cancel the 2 pending units without selling the filled unit.
Your task
Describe submitted, filled, pending and position quantities before and after cancellation.
Compare my answer with the reasoning
Before cancellation: 3 submitted, 1 filled, 2 pending and a long position of 1. Afterwards: 0 pending and the position remains 1. Cancelling a pending order does not close a filled position. This paper case teaches partial fills; it does not imply that the simulator reproduces a real queue.
Evidence you should be able to explain
An order-and-position state record that distinguishes submission from execution.
If you cannot justify it, revisit the example and state what is missing. A memorised answer or simulated profit does not replace this explanation.
Check the skill across three cases
Answer with figures or specific choices. Feedback identifies the error and proposes a task. Checking happens in this browser without sending answers to the server. Saving identifiers and outcomes to resume learning is optional in My learning.
Your answers are not saved. Counters and identifiers are only kept locally if you enable saving in My learning.
A correct case only establishes that you solved this case. Repeating it or viewing the solution changes the evidence; it does not establish mastery or readiness to risk real money.
Sources and references
Chezur examples and explanations are educational. Consult the original source to verify conditions, data and updates.
Context and review of this explanation
When does an order become an executed position?
- Topics
- Orders and execution
- Level
- Beginner
- Skills
- Explain an order instruction
- Examples
- Hypothetical situations illustrating the concept.
- Specialist review
- Not documented for this edition. Automated structure and internal-link checks do not establish specialist review.