Calls
A call is an agreement between two parties to buy or sell a financial instrument at a predetermined price and date. Calls are typically used in the stock market, where investors can purchase the right to buy a stock at a certain price within a certain period of time. Calls are also used in the futures and options markets, where investors can purchase the right to buy or sell a commodity or currency at a certain price within a certain period of time. Calls are also used in the foreign exchange market, where investors can purchase the right to buy or sell a currency at a certain price within a certain period of time.
History of Calls
The concept of calls has been around since the late 19th century, when the first call options were traded on the Amsterdam Stock Exchange. Since then, calls have become an important part of the financial markets, as they provide investors with the ability to hedge their investments and manage their risk. Calls are also used by speculators, who use them to take advantage of price movements in the markets.
Comparison of Calls
| Type of Call | Price | Expiration Date |
|---|---|---|
| Stock Call | $50 | 3 months |
| Futures Call | $100 | 6 months |
| Options Call | $150 | 9 months |
| Forex Call | $200 | 12 months |
Summary
Calls are agreements between two parties to buy or sell a financial instrument at a predetermined price and date. Calls are used in the stock, futures, options, and foreign exchange markets, and provide investors with the ability to hedge their investments and manage their risk. For more information about calls, investors can visit websites such as Investopedia, The Balance, and Investing.com.
See Also
- Puts
- Options
- Futures
- Stocks
- Forex
- Derivatives
- Hedging
- Speculation
- Risk Management
- Investing
