Investing terms

Make the trade
  • Home

Call Option – What is a Call Option?

May 22, 2019 by Investor

What is a Call Option?

Definition of Call Option: Most of the time this term is labeled as “call”. It can be explained as an agreement in which the purchaser has a right but not a responsibility to but a specific security, currency or item for a given amount of money, as far as European call alternative is considered. The writer or seller is compelled to vend the underlying security, currency or commodity if the purchaser should decide so and for this specific right, the purchaser pays a charge which is known as premium. The purchaser expects the costs to increase, therefore rising the cost of his alternative. His disadvantage danger is restricted according to the premium which was paid by him. When the currency cost or the fundamental gadget’s cost exceeds the strike cost, the alternative regarded is in the finance. It is sensible to vend the money call prior to its expiry date. There are some brokers who will sell the “in money” call choice automatically before it gets expired as they gain a commission. If the account of a person has sufficient amount of money the broker will purchase the related currency. To realize the profit one must exit their position. If you are among those who want to deal in the currency choice, ensure to check with the broker as all the Forex brokers do not deal in the options.

Related posts:

  1. At the Money – What is At the Money?
  2. Margin Calls and Forex Trading
  3. In the Money – ITM – What is In the Money?
  4. Covered Call – What is a Covered Call in forex?
  5. American Option – What is an American Option?
  6. European Style Option – What is a European Style Option?
  7. Margin Call
  8. Margin call

Filed Under: Education, Uncategorized

Make the trade

Ads

img

Categories

  • EasyMarkets
  • Education
  • ETX Capital Review
  • Featured Terms
  • Forex brokers
  • Forex Exness
  • Freshforex Review
  • Fxpro
  • Terms
  • Uncategorized
  • XM forex broker
  • Xtrade Review
  • Zulutrade Review

Choose foreign language section

  • الاستثمار حيث
  • পদ বিনিয়োগ
  • 投资条款
  • Investitionen Begriffe
  • शर्तें निवेश
  • Conditions investir
  • Investire termini
  • 用語を投資
  • Investir termos
  • Términos invertir
  • Инвестирование условия
  • Terimleri Yatırım
Copyright wikifx.info 2013