"Select Which Order When Selling Options?"
"When we buy we selected buy to open, so, what do we select when we would like to sell ? thanks "- Asked By Eric on 4 January 2009
Answered by Mr. OppiE
Hi Eric,
When you buy a stock option, you are opening a position by buying, hence Buy To Open. When you are ready to close that position by selling it, you will need to use the Sell To Close order.
Conversely, if you shorted a stock option using the Sell To Open order, then you will need to use the Buy To Close order to close that position by buying back those options.
In conclusion, if options trading for you is nothing more than just buying options and then selling them for a profit when the stock moves in your favor, then all you really need to know are the Buy To Open and Sell To Close orders. To learn about all the other orders, please refer to our Types Of Options Orders tutorial.
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