Close Position

Market orders are helpful if you want to enter a trade quickly because they immediately execute at the best possible price. However, we don't suggest using market orders when trading, as they may include a wide range of prices, depending on the security’s liquidity.

Limit orders allow traders to execute their order at a specific price or better. Limit orders are a great way to initiate trades at a price you want an order to fill, and don't require you to watch the market or rush trades.

Learn how to use market orders, limit orders, and stop loss orders when entering and exiting options trades.

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.