# Opening Sale Open Purchase Closing Sale Closing Purchase

**URL:** <https://talk.achievable.me/t/opening-sale-open-purchase-closing-sale-closing-purchase/3289>\
**Category:** Uncategorized\
**Created:** [May 20, 2023, 12:42am UTC](https://talk.achievable.me/t/opening-sale-open-purchase-closing-sale-closing-purchase/3289 "2023-05-20T00:42:25Z")\
**Posts on this page:** 3\
**Page:** 1

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**Author:** ![Faith\_Ruecker](https://talk.achievable.me/letter_avatar/faith_ruecker/32/6_22734026db12803ebb3e059622ac3534.png) [@Faith\_Ruecker](https://talk.achievable.me/u/Faith_Ruecker)\
**Post date:** [May 20, 2023, 12:42am UTC](https://talk.achievable.me/t/opening-sale-open-purchase-closing-sale-closing-purchase/3289/1 "2023-05-20T00:42:25Z")

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I have taken this quiz 12 times and not scored over a 50%! Can anyone simplify and dummy this down for me!? TY!

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**Author:** ![Nutritious\_rose\_bovi](https://talk.achievable.me/user_avatar/talk.achievable.me/nutritious_rose_bovi/32/688_2.png) [@Nutritious\_rose\_bovi](https://talk.achievable.me/u/Nutritious_rose_bovi)\
**Post date:** [May 20, 2023, 2:51pm UTC](https://talk.achievable.me/t/opening-sale-open-purchase-closing-sale-closing-purchase/3289/2 "2023-05-20T14:51:03Z")

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@Faith_Ruecker I will attempt to explain it as I see it. The first thing to look at is anytime you are going “Long” a position, you are buying something, either a put or a call, so this is considered an opening purchase. To close this out, you have to perform the opposite which would be a closing sale. If you started out with going “Short” a position, you are selling something, either a put or a call, so this is considered an opening sale. To close this out, you have to perform the opposite which would be a closing purchase. In options, especially when you get asked the “closed at intrinsic value questions”, I think of it this way. If I pay (go long, holder) to open the option, I get paid to close the option. If I get paid (go short, writer) to open the option, I have to pay to close the option. It’s one of things that I had to just accept that’s how options work even though it didn’t make sense to me at first, but after missing a large portion of the quiz questions it finally started to sink in. Hope this helps!

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**Author:** ![Justin](https://talk.achievable.me/user_avatar/talk.achievable.me/justin/32/41_2.png) [@Justin](https://talk.achievable.me/u/Justin)\
**Post date:** [May 20, 2023, 4:34pm UTC](https://talk.achievable.me/t/opening-sale-open-purchase-closing-sale-closing-purchase/3289/3 "2023-05-20T16:34:28Z")

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It’s best to think of this in two parts:

- **Opening** vs **closing**
- **Purchase** vs **sale**

Opening vs closing

- If the investor currently is starting a new position, then they make an **opening** transaction
- If the investor currently is ending an existing position, then they make a **closing** transaction

Purchase vs sale

- If the investor wants to buy the option, they make a **purchase** to go long
- If the investor wants to sell the option, they make a **sale** to go short

Here’s an [example question on opening/closing purchase/sale](https://app.achievable.me/study/finra-series-7/quiz/9DCRJ#seed=22JG9&slug=an-investor-comes-to-your-office-to-open-a-new-options-account...).

In this case:

- The investor has a new account with no existing positions, so it is an **opening** transaction
- They want to short the stock, so they are making a **sale**