Sell to Open: A sell-to-open order is a type of options trading order used to initiate a short position in an option contract. This means that the trader sells an option with the expectation that its price will decline. The trader hopes to buy it back at a lower price and realize a profit. A sell-to-open order involves selling an option that the trader does not currently hold, in contrast to a sell-to-close order, which closes an existing long position in an option. Sell to Close A sell-to-close order is a type of options trading order used to close an existing long position in an option contract. This means that a trader who previously bought an option uses a sell-to-close order to sell that option, either to realize a profit or to limit a loss. Examples, Strategies, and When to Use Each https://preview.redd.it/aqdxu5refmga1.png?width=1080&format=png&auto=webp&s=8e86f53c44fb5a54f3d5936b62dabccfcbee820c submitted by /u/LouDogg00 [comments]
