Monday, April 25th, 2016

What does the phrases “buy to open”, “sell to open”, “buy to close” & “sell to close” mean in options trading?

Thanks a lot. I know but I’m new options Strategies to actual trading. It Would be a good start to at least know the basics of what I’m doing.

Comments

6 Responses to “What does the phrases “buy to open”, “sell to open”, “buy to close” & “sell to close” mean in options trading?”
  1. Common Sense says:

    A position can be long or short.
    So with that in mind;

    Buy to open (buy a put or call as a new position)
    Sell to open (sell a put or call as a new position)
    Sell to close (after having a open position in a put or call, you “close” the position by selling it).

  2. Rolf Golf says:

    Buy to Open = Open a new position by BUYING the option
    Buy to Close = Closing an existing short position by BUYING BACK the option
    Sell to Open = Open a new position by SHORTING the option
    Sell to Close = Closing an existing long position by SELLING the option

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