Call definition

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.

New to options?

Read our options education section.

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CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79% of retail investor accounts lose money when trading CFDs with this provider.
You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.