What are call options?

Trading terminology Importantly, this word is called Call option , or many times it is often called Call or currently is the word Up. What is this word and what does it mean? How important is it to trade binary options or option contracts? And finally, how to use Call option properly, what to do with Quotex broker, this article has the answer.

What are call options?

Call option, abbreviated as Call, is a name for a financial option contract, meaning “an agreement between the buyer of the contract and the trader. With the seller the contract is the broker, agreeing that the buyer anticipates the price of the asset set by the seller. will have a higher value Current asset price at the time of the termination of the option contract.”

It can be explained that if the asset price is higher than the current one, the buyer will receive a return of % as agreed with the seller with the security deposit. But if the prediction is wrong The buyer must pay all insurance money to the seller.

for example

The seller (broker) sells the GBP/JPY pair option contract, agreeing that if the buyer forecasts the price The buyer receives a profit of 90% of the security deposit.

Buyer buys a Call option contract GBPJPY at a price of 167.583, a contract term of 5 minutes, with a $1000 margin.

After 5 minutes, the contract is terminated. It turns out that the price of GBPJPY is 170.111 higher than the price at the time of opening the call option contract.

As a result, the buyer receives 90% of the security deposit $1000×90% = 900+1000 = $1,900.

Incidentally, the Call option has now evolved into a green button. Available in all binary options trading platforms in all brokers. Most often use the name in English simply as UP or in the Thai name is “up”. If you see such a word, understand that it is a Call option contract.

The importance of call options

Call option contracts are very beneficial to the market. Because it is a contract that helps hedge financial risks for traders. The more trades, the more profitable.

How to use the Call option contract

If you choose to trade with Quotex broker, the Call option contract button will be in front of the Quotex trading platfrom as a green button. It is labeled as “Up” or “Up” in English.

WARNING: You must complete all the parameters related to your option contract before pressing the Call option button. You will not be able to amend any of the terms of the contract at all.

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