Think of it as the "undo" button for a trade where you started by collecting cash upfront.
A order is what you use when you want to exit an options position that you originally sold (shorted). buy to close option example
If the stock moves against you, you BTC to prevent further losses. Think of it as the "undo" button for
You might BTC right before an earnings report or a major news event to avoid volatility. buy to close option example
If you’ve made 50–80% of the max profit, many traders BTC to "take the money and run."