We’ll starts with the fact that the call option (CALL for the purchase) is an agreement between the buyer and the seller, according to which the first gets the right to buy the underlying asset at the price agreed in the contract, and the second undertakes to sell it at a certain time. The seller-side grants the right to the buyer-side to choose whether to conduct the transaction or not, for which he receives the indicated premium at the time of the arrangement. Thus, if the buyer decides to execute the transaction, the other party must fulfill the stipulated obligations, and if it does not show this intention, these obligations will be removed from the second at the time when the contract is completed. While buying a call option implies a buyer's desire to buy an asset in the future, when he plays on a downgrade, a put-option (PUT) is acquired in order to sell it after a while, in turn, playing on a raise. Trade with hqbroker without loss and with professional brokers. What is an American call option? Such tools do not imply a regional limitation of their use, as it may seem at first glance. Their name indicates that they were invented in America, but non-residents of the United States also have access to them. Options can be divided into two groups, based on the time of the transaction by the holder: • American. If the buyer wants to buy an American call option, he will be able to conduct the transaction at any time while the contract is valid. • European. Buying a European call option, he will be able to perform this action only at the specified date (the last day of the validity period). • It should be said that, in this connection, American put options and calls are the most in demand among traders. This is attributed to the fact that one cannot absolutely predict the rate of the asset, and it can always go sharply to either side. The advantage that holders of such contracts hold is that they can instantly react to price changes and take the appropriate action. Therefore, the popularity of "Americans" can be explained by some insurance against the unforeseen market situation that they provide to their owners. • The buyer will benefit from the purchase of such a contract if the price of the underlying asset increases. In turn, the seller will benefit when the value of the asset remains the same or will decrease until the end of the option period. Then the holder does not exercise his right to purchase assets, and the seller will have his guaranteed premium. Subscribe to hqbroker.com reviews to stay updated with market events. Use the educational materials on company’s website and learn a lot of interesting things from the world of trade.