Buy To Open Sell To Close [TOP]

You expect the underlying asset's price to fall (bearish). 2. Sell to Close (STC): Exiting the Trade

It typically increases open interest , as a new contract is often being created between you and a seller. Strategic Intent: buy to open sell to close

In options trading, "Buy to Open" (BTO) and "Sell to Close" (STC) are the two halves of a standard . They describe the lifecycle of a trade where you purchase a contract first and exit it later by selling it. 1. Buy to Open (BTO): Entering the Trade You expect the underlying asset's price to fall (bearish)

You relinquish your rights and realize a profit or loss based on the difference between your initial BTO premium and the current STC premium. Strategic Intent: In options trading, "Buy to Open"

You pay a premium (debit) to a seller to acquire the rights of a contract. Result: You become the "holder" or "buyer" of the option.