What does Liu mean by "topological open/closed immersion" in his book "Algebraic Geometry and Arithmetic Curves"?

Solution 1:

Yes, that's a correct definition. Yours (1.) is also equivalent to 2. below.

  1. $f(X)$ is open (closed) and $f$ is a homeomorphism on its image
  2. $f$ is open (closed) and a homeomorphism on its image

If we then define an immersion to be a homeomorphism on its image, then an open (closed) immersion really is an immersion that is open (closed).

Note: it is also called an embedding, which is safer to use than immersion, because it is closer to the terminology used in differential geometry.