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

This order is used to a new long position. When you execute a BTO order: buy to open sell to close

Most traders use STC to capture the option's remaining extrinsic value (time value and volatility) rather than exercising, which only captures intrinsic value. Comparison Summary Master the Basics: 4 Key Options Trading Strategies In options trading, "Buy to Open" (BTO) and

You expect the underlying asset's price to rise (bullish). Buy to Open (BTO): Entering the Trade This

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