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A short call happens when a trader foresees that the value of the currency pair may go down and thus sells short the currency pair or “writes” or “grants” a call. An investor who decides to sell a call is obliged to sell the currency pair to the call buyer at the latter’s option. If the currency value indeed decreases, the call position earns a profit via the premium. If it however increases more than the exercise price and the premium amount, the short loses an unlimited amount.

Option Play Book – Short Call Option

Learn about the 19 primary option trading strategies for trading options on commodity futures contracts.

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3. Naked Call Options Trading Strategy
4. Learn How Commodity Trading Works
5. The Standardized Items in Any Futures Contract.

Tags: currency pair, short call options

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