Buy To Open Sell To Close Access

It can decrease or leave open interest unchanged, depending on whether the buyer is also opening or closing a position.

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

You relinquish your rights and realize a profit or loss based on the difference between your initial BTO premium and the current STC premium. It can decrease or leave open interest unchanged,

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 buy to open sell to close

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