Been trading for a while now but these terms still trip me up sometimes.
Sell to open means you’re starting a short position right? And sell to close is when you exit a long position you already have.
Want to make sure I understand this correctly before I mess up another trade.
Correct understanding. Here are the definitions:
• Sell to open = start a short position
• Sell to close = exit an existing long position
Verify your selection before submitting.
Did this exact thing in my second month - accidentally doubled a losing EURUSD position instead of closing it.
Lost $200 that day. Now I always pause before hitting sell.
You’ve got it right though.
Exactly right. Think about what’s actually in your account. Sell to open means you’re shorting by borrowing shares. Sell to close means you’re selling shares you already own. Always check your position size before hitting submit to avoid mistakes in trades.
Correct, sell to open is starting a short position and sell to close ends a long one.
Those terms can be tricky for anyone new to trading. Sell to open does mean that you’re going short, betting on a price decline. Sell to close is simply about exiting a position you already have. Keep them straight to avoid costly mistakes.