Buy To | Open Sell To Close

You expect the underlying asset's price to rise (bullish).

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 buy to open sell to close

This order is used to a new long position. When you execute a BTO order: You expect the underlying asset's price to rise (bullish)

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

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 position you previously opened via BTO. When you execute an STC order: Action: You sell your existing contract to another party.

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.