Dictionary

B

BTC: Buy to Close

BTO: Buy to Open

E

Exchange Traded Fund (ETF): An investment fund traded on stock exchange like stocks.  An ETF holds assets such as stocks, commodities, or bonds, and trades close to its net asset value over the course of the trading day. Most ETFs track an index, such as the S&P 500, Russell 2000, or MSCI EAFE. ETFs may be attractive as investments because of their low costs, tax efficiency, and stock-like features


L


Long: The buying of a security such as a stock, commodity or currency, with the expectation that the asset will rise in value.  In the context of options, the buying of an options contract. 


S

Short: The sale of a borrowed security, commodity or currency with the expectation that the asset will fall in value.  In the context of options, it is the sale (also known as "writing") of an options contract.

STC: Sell to Close

STO: Sell to Open