| Buy To Open |
A term used by many brokerages to represent the opening of a long position in option transactions.
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Investor can buy to open either (or a combination of) puts or calls, and thus will be holding the option(s) long. The distinguishing factor of a buy to open is that the option position is not held short in the account during the transaction.
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Options Basics Tutorial - An introduction to the world of options, covering everything from primary concepts to how options work and why you might use them. |
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