Types of Options There are many different types of options that can be traded and these can be categorized in a number american forex option ways. In a very broad sense, there are two main types: calls and puts.
Calls give the buyer the right to buy the underlying asset, while puts give the buyer the right to sell the underlying asset. Options can be further categorized based on the method in which they are traded, their expiration cycle, and the underlying security they relate to. There are also other specific types and a number of exotic options that exist. On this page we have published a comprehensive list of the most common categories along with the different types that fall into these categories.
We have also provided further information on each type. Calls Call options are contracts that give the owner the right to buy the underlying asset in the future at an agreed price. You would buy a call if you believed that the underlying asset was likely to increase in price over a given period of time. Puts Put options are essentially the opposite of calls. The owner of a put has the right to sell the underlying asset in the future at a pre-determined price.