Think of it as the "undo" button for a trade where you started by collecting cash upfront.
You don't want to wait for expiration, so you place a order. You pay $50 to buy the contract back. Status: Your position is now 0. buy to close option example
You might BTC right before an earnings report or a major news event to avoid volatility. Think of it as the "undo" button for
You collected $300 and paid $50 to get out. Your total profit is $250 . Why use "Buy to Close"? buy to close option example