How to open an FBS account?
Click the ‘Open account’ button on our website and proceed to the Personal Area. Before you can start trading, pass a profile verification. Confirm your email and phone number, get your ID verified. This procedure guarantees the safety of your funds and identity. Once you are done with all the checks, go to the preferred trading platform, and start trading.
How to start trading?
If you are 18+ years old, you can join FBS and begin your FX journey. To trade, you need a brokerage account and sufficient knowledge on how assets behave in the financial markets. Start with studying the basics with our free educational materials and creating an FBS account. You may want to test the environment with virtual money with a Demo account. Once you are ready, enter the real market and trade to succeed.
How to withdraw the money you earned with FBS?
The procedure is very straightforward. Go to the Withdrawal page on the website or the Finances section of the FBS Personal Area and access Withdrawal. You can get the earned money via the same payment system that you used for depositing. In case you funded the account via various methods, withdraw your profit via the same methods in the ratio according to the deposited sums.
Short call (naked call/uncovered call)
What is a short call?
If you expect a stock price to go down, you can sell a short call option. These options are a go-to strategy for sellers who want to make a profit from a possible price decline. They can also be used as a part of the short sells strategy that also relies on the stock price drop.
In general, call options allow their holders to buy stocks at a specified price (strike price) and within a limited time period. So even if the holders do not buy the stocks at the strike price before the short call option expires, the seller still keeps the premium paid for the option. Moreover, when you short the call option, you get your profits right away. You can even sell call options on stocks that you do not own at that moment (called naked or uncovered calls).
Of course, this strategy is quite risky since the stock prices can go up instead. In this case, you will be obliged to sell your stocks at a low price and can lose quite a lot of profit. So it is better to use short calls when you are sure the prices are going to fall.
Example of a Short Call
Let’s say you have a stock currently trading at $50, but you really feel that the price is going to drop within the next couple of months. This means that you now have a good opportunity to sell a short call option. So you decide to short a call option with a strike price of $55 for $5.
If the stock price stays under $55, the call option will most definitely expire and you will have both your profit of $5 and your stocks.
But if the price actually rises above $55, the option holder will naturally use it to buy the stocks at the strike price, leaving you with only $5 and without your stocks!
2022-06-27 • Updated