Entries & Exits

Buy to Close vs Sell to Close

Buy-to-close (BTC) orders pay a debit and close a position that was opened selling options. Sell-to-close (STC) orders receive a credit and close a position that was opened buying options. The premium paid or collected, relative to the opening order, determines your profit or loss on a trade.
Buy to Close vs Sell to Close
Kirk Du Plessis
Apr 19, 2021

Knowing which type of closing order to enter is just as important when trading options as opening orders. In this video I'll quickly cover Buy to Close (BTC) vs Sell to Close (STC). Buy to close orders are orders that reverse original trades where you took in a credit or premium from selling options. Sell to close orders are the most typical style of order because you are selling some underlying option that you already own for a credit, therefore closing out the trade.

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