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Define: Buy To Close (BTC)

Buy To Close (BTC) is an options order used to close out your short options positions. It literally means to close a position by buying it.

If you shorted (write) options using the Sell To Open order, you would need to use the Buy To Close (BTC) order to close that position. For instance, if you Sell To Open 1 contract of QQQQ Jan30Call and you wish to take profit on it, you would Buy To Close that QQQQ Jan30Call.

Read the full tutorial on Buy To Close (BTC).