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Where the security is held in the account both as a long and a short position.
These positions can be of equal or unequal quantities (i.e. full or partial box).
Bull Trap
A bull trap occurs when prices break above a significant level and generate a buy
signal, but suddenly reverse course and negate the buy signal, thus trapping the
bulls that acted on the signal with losses.
Butterfly
A butterfly is a four-legged options strategy, which combines either two call
spreads or two put spreads. All four call (or put) legs have the same expiration
date, and generally also maintain consistent distances between the three strike
prices involved. The strategy gets its name from its 3-part structure, involving
the two outer strikes (or "wings") and the middle strike (representing the
"body"). Click here to read more about butterfly spreads.
Buy
Purchase of a security.
Buy Signal
A buy signal is a condition that suggests a time to buy a stock. The signal will
vary depending on the type of technical indicator used, or it may be based on a
non-technical event, such as a change in an analyst recommendations or the
release of positive news. Note: It's unwise to base buy or sell decisions on just
one indicator.
Buy Stop
A buy stop is a buy order usually placed above the current price, requiring that a
security would have to trade at or above a set level before the buy order would
be activated. For example, an order could be entered at 35.5 for a security trading just below resistance at 35. By placing a buy stop order just above resistance, the trader prefers to wait for that security to break resistance before
going long. This type of order can also be used as a stop loss for a short position.
Please note that there is no guarantee that execution will be at or near your stop
price.
Buy to Close
You "close" a short option position when you buy it back.
Buy to Open
You "open" a long position when you buy a new option.
Buying Power
This is the maximum dollar value of marginable securities that you can buy in
your margin account without depositing additional equity. Buying power is calculated at the close of business each day and may fluctuate throughout the day.
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