What Is Sell to Close in Options Trading on Pluang?

Sell to Close is the order you place to exit an existing long options position on Pluang — you sell the same call or put contract you originally bought, ending the position and realizing the outcome of any change in the premium since you opened it. It only applies to long positions (contracts you bought to open); if the premium has risen above what you paid, a Sell to Close order locks in a profit, and if it has fallen, it locks in a loss. This is the mirror action of Buy to Close, which is used to exit a short (sold) position instead. You can submit a Sell to Close order as a market or limit order at any point before the contract's expiry date — you don't have to hold until expiry. If you never close the position yourself, Pluang automatically force-closes any option still open roughly one hour before market close on the expiry date.

How Sell to Close fits into options position management:

• Sell to Close vs Buy to Close: Sell to Close ends a long position (one you bought to open); Buy to Close ends a short position (one you sold to open). They are opposite actions used for opposite starting positions.
• Order type: You can place Sell to Close as either a market order (executes at the best available price immediately) or a limit order (executes only at your specified price or better), depending on the liquidity available for that specific contract on the options chain.
• No assignment risk: Because Sell to Close is used by the buyer (long holder), it carries no assignment risk — assignment only applies to sellers (short positions).
• Access requirement: Trading options on Pluang, including placing a Sell to Close order, requires completing Global & Yield Asset Verification first.
• Custody: Options positions are custodied through Atomic Vaults LLC, with SIPC account protection.
• Any confirmed cost tied to closing a position is shown in the app before you confirm the order — check current terms there rather than assuming a fixed figure.

Related questions:

Q: What's the difference between Sell to Close and Buy to Close?
Sell to Close closes a long position — you sell a call or put you previously bought to open, ending your exposure and realizing the current premium as your outcome. Buy to Close does the opposite: it closes a short position by buying back a contract you previously sold to open. Both are exit actions, but they apply to opposite starting positions — you can only use one or the other depending on whether you originally bought or sold the contract.

Q: Can I place a Sell to Close order before the option's expiry date?
Yes. You can submit a Sell to Close order at any point while the market for that contract is open, right up until Pluang's expiry-day cutoff — you don't need to wait for the contract to expire. Closing early lets you lock in a profit or limit a loss based on the current premium rather than leaving the outcome to whatever the underlying price does by expiry.

Q: What happens if I don't sell to close my long option before expiry?
You don't need to manually close it yourself right up to the last moment — Pluang automatically force-closes any options position that is still open, roughly one hour before market close on the expiry date, rather than letting it run to a passive, automatic settlement. To control the exact price and timing of your exit, submit your own Sell to Close order before this cutoff instead of relying on the automatic close.

Q: Does placing a Sell to Close order carry assignment risk?
No. Assignment risk applies to sellers holding a short call or short put, who can be required to fulfil the contract if the buyer on the other side exercises. Sell to Close is used by the buyer (long holder) to exit a position, so it never triggers or exposes you to assignment — that risk only applies on the short side of a contract, not the long side you're closing out of.