Exiting Trades

Stop loss orders aren't always the best tool when trading risk-defined option strategies. Learn how to apply smarter stop loss orders using probabilities.

Learn to identify when you should and shouldn't adjust an options trade and how to make the decision objectively.

Advanced and contingent orders can help automate your trading process when entering and exiting trades.

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.

Contingent orders are a great way to place orders in the market if you are not able to watch positions throughout the day. These are the top-5 contingent order types you can use to help automate your options trading.

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.