Call Option

A Call Option is a financial derivative contract that grants the buyer the right, but not the obligation, to purchase an underlying asset, such as a currency pair, stock, or commodity, at a predetermined price (the strike price) on or before a specified date (the expiration date), in exchange for paying a premium to the seller. This instrument is fundamentally used by traders and investors who anticipate an increase in the underlying asset's price, offering a leveraged way to profit from upward market movements while limiting the potential loss to the premium paid.