Options buy sell procedure

[Mark 44]

Just wanted to ask for some clarity in the procedure to purchase options on the MT platform.

Could you please explain the 4 buttons (buy open, buy close, sell close sell open) in the trade ticket window. On the Questrade platform we have only the "buy" "sell" buttons .

Also please correct me if I'm wrong. To initiate an options trade the procedure would be to right click on the options chain window for the desired call or put option by selecting the trade button.

For example the SPY options chain, 213 calls, right click on the 213 call and then select "trade" which initiates the trade ticket window.

From the trade ticket window I presume we are clicking the "buy open" to purchase the desired 213 call (or put) and "sell close" to later complete that transaction.

Thanks

[Jerry Medved]

First about the various Buy/Sell buttons - some brokers require the distinction between Buy to Open and Buy to Close for options. I forgot to reconfigure Questrade to not require that. Just made it have only BUY/SELL buttons for both stocks and options (removed COVER and SHORT for stocks as they are not needed either).  Buy to Open and Buy to Close in your version have exactly the same functionality as far as Questrade is concerned.

As for how to place orders, options really work same as stocks. you can right click and select TRADE on the option chain window, or if you have the option in your portfolio, you can do it there, or you can enter the option right on a trade ticket window. If you have a chart open for an option, you can do chart trading, same as with stocks.

 

[Mark 44]

Thanks Jerry. Appreciate the follow up.