/biz/ - Business & Finance

>>18860724
Call: betting the stock will go up in price.
A call is a contract between a seller and buyer. This contract gives the buyer the option to buy the share at the agreed upon price no matter how high the value of the share goes.
Each contract is worth exactly 100 shares.

You're not paying for the shares. You're paying for the option to buy those shares at a later time at the agreed upon price.

If in the time you waited it, the stock went up 10000%, then you can exercise(buy the 100 shares) for the price you agreed on in the contract, even if it was 1 dollar.

OR newfren you could sell the contract you bought at a much much higher price. So you never even bought or sold shares. you bought the option to.

Nigger.

>>18578901
it all comes tumbling down