Buy to Close vs Sell to Close
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.