Imagine you find a house listed for . You believe the neighborhood is about to boom and the house will be worth $1,200,000 next month.
: When you pay that $5,000 to get that contract, you have "bought to open" your position. You didn't own a contract before; now you do. Two possible endings to the story: buy to open example
: No one wants to move there, and the house value stays at $1,000,000 . You choose not to buy the house for $1,050,000. Your contract expires, and you lose only the $5,000 you paid to open the deal. Common Examples in Trading What is Buy to Open in Trading? Everything You Need to Know Imagine you find a house listed for