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buy to open

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Financial Dictionary

Buy To Open

A term used by many brokerages to represent the opening of a long position in option transactions.

Investopedia Commentary

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.

Related Links

Options Basics Tutorial

See also: Buy, Buy to Close, Call, Long, Open Interest, Option, Put, Sell to Close, Sell to Open, Short

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