Buy To Open Sell To: Close

This order is used to a new long position. When you execute a BTO order:

You expect the underlying asset's price to rise (bullish).

This order is used to a position you previously opened via BTO. When you execute an STC order: Action: You sell your existing contract to another party. buy to open sell to close

You pay a premium (debit) to a seller to acquire the rights of a contract. Result: You become the "holder" or "buyer" of the option.

You relinquish your rights and realize a profit or loss based on the difference between your initial BTO premium and the current STC premium. This order is used to a new long position

It typically increases open interest , as a new contract is often being created between you and a seller. Strategic Intent:

You expect the underlying asset's price to fall (bearish). 2. Sell to Close (STC): Exiting the Trade When you execute an STC order: Action: You

It can decrease or leave open interest unchanged, depending on whether the buyer is also opening or closing a position.