CFDs are a leveraged product and can result in losses that exceed deposits. Trading CFDs may not be suitable for everyone, so please ensure you fully understand the risks and take care to manage your exposure.

Call definition

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Calls are option contracts that allow traders to profit when an asset’s price increases beyond a certain point within a specified time. They are the opposite of puts, which return a profit when an asset’s price decreases beyond a certain point within a defined period of time.

A call option gives the trader the right, but not the obligation, to buy a certain market at a certain price (called the strike price) before its expiry date. 

Call example

If you buy a call option on Apple at $130 before the end of the week, for instance, you can decide to buy Apple for that price at any point that week. If Apple’s stock exceeds $130 in value then the option is in profit, or in the money. You can then execute the option and buy the stock. If Apple never reaches $130 then no profit can be made, but the only loss is the initial premium paid to take out the call option.

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CFDs are a leveraged product and can result in losses that exceed deposits. Trading CFDs may not be suitable for everyone, so please ensure you fully understand the risks and take care to manage your exposure.