Option Trading Sell to Open & Buy to Open

There are many different options terms that are commonly used when talking about trades.

Sell to Open means you are receiving a credit to open that position. A credit means you are receiving money into your account, just like when you sell stock.

Buy to Open means you are paying a debit to open that position. A debit means you are paying money from your account, just like when you buy a stock.

If you are trading a multiple options, sell to open means the net price of the trade is negative and you will receive a credit.

Whereas buy to open means the net price of the trade is positive and you must pay a debit.