Call option is the one kind of option contracts, in which the person who buys an option, can purchase some goods or assets at the arranged price, regardless that the market price in the moment of purchase and sale will be different. If the rate hasn’t changed or has gone down, the seller of the option gains profits, as they’ve retrieved the reward from the buyer. If the price goes up and the spread will be big enough to cover the reward, the option buyer gain profit.
Don’t think you won’t need any knowledge about the financial market and the economy in general at the option exchange. Conversely – they are needed even more than at the currency or stock exchange. If you can’t forecast the direction of the asset or commodity price, you will make unprofitable orders and lose your money.
Surely, it’s about speculators only. If you buy options for hedging (minimizing) risks, you don’t have to know that much. Though, isn’t it strange but usually it occurs that those very entrepreneurs who minimize risks, have knowledge, while speculators who want to earn with options don’t. And then everybody is surprised why there are so many bad rumors about the options exchange. You can train on this website. If you have some basic knowledge about trading – start studying the article “Binary Option Trading! The Step-By-Step Instruction!”, and if you haven’t ever met financial exchanges, drill the “Encyclopedia for Dummies”.
Do you know why the uptrend market is called “bull”? Because a bull, when ramming its prey, throws it up with horns, just like the uptrend of the price moving in this direction. And the rule is concluded long time ago, though, it’s not very accurate. Its essence if that when the rate grows, it does it slowly, stably and step-by-step, without abrupt jumps. I must mention that it touches only shares and precious metals prices, but not currency quotations. Thus, at low-volatility market, one’s recommended to buy tools, and not to sell them.
As for the conclusion, I must add the call option is older and more traditional, in contrast to the put option. This contract type was used long time ago, and today entrepreneurs prefer using it, if they want to hedge their risks. What’s to the speculation, both types of options are used there with the relatively equal proportion. If you decide to start gaining at option exchange, I recommend to open a 250 $-account at a broker company. And having studied a strategy from the table below before that, you will succeed and become a professional trader.
|Strategy||Trend-Trading||Trading Against The Trend||With The Scale Of Choice||Signals||News-Trading||Martingale|
|Difficulty Level (1-10)||2||4||3||1||4||1|
|Profitability (% of the initial deposit per month)||50%||65%||55%||50%||60%||55%|
for binary options
|Moving Averages:||Buy (0) Sell (12)|
|Indicators:||Buy (1) Sell (4)|