It typically increases open interest , as a new contract is often being created between you and a seller. Strategic Intent:
In options trading, "Buy to Open" (BTO) and "Sell to Close" (STC) are the two halves of a standard . They describe the lifecycle of a trade where you purchase a contract first and exit it later by selling it. 1. Buy to Open (BTO): Entering the Trade buy to open sell to close
This order is used to a new long position. When you execute a BTO order: It typically increases open interest , as a
You relinquish your rights and realize a profit or loss based on the difference between your initial BTO premium and the current STC premium. It can decrease or leave open interest unchanged,
It can decrease or leave open interest unchanged, depending on whether the buyer is also opening or closing a position.