CALL and PUT options

Posted by OliverPearson 0

CALL and PUT

Investing in binary options, all investors see such terms as a PUT option and a CALL option. Actually, these words do not mean a type of binary options; they mean what condition accompanies the binary option you buy.  If you make a right choice, you can get a 70% to 80% profit.

upCALL is a contract that the price will rise. Today, most brokers put UP, the help word, near this contract.  If you expect the price of the underlying security to rise, you need to buy a CALL option.

 

 

downA PUT option is a contract that the price will decrease, that is, if you expect the price to fall, you need to buy a PUT option.  Typically, there is DOWN, the help word, near the PUT option.

 

These contracts, CALL and PUT, cover the period until the option expires. For instance, you invest in the CALL binary option on the CAC 40 index, and the price rises after expiration of the binary option, in this case you don’t make a profit. Therefore, to do a precise forecast for the period of the option validity is extremely important, however, what period to choose is up to you.

Both conditions, PUT and CALL, are basic for any binary option. They denote future price direction and influence your profit.

What important when buying binary options is to do an accurate forecast and choose the right contract either PUT or CALL (fall or rise of the price).

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