A leading crypto exchange, Binance has officially announced today the launch of Bitcoin options on its futures trading platform.

According to the announcement, this new development, for now, is only limited to the latest version of the exchange’s mobile app. For the BTC/USDT options contracts, traders will first transfer their USDT holdings from the spot wallet to their futures wallet, after which they will have to choose an expiry date. However, the chosen expiry date should be within the range of 10 minutes to 1 day.

Binance is offering the American version of options contracts, in which traders can exercise their rights. This version allows them to settle the contracts at the chosen ‘strike price’ at any time or on the expiry date.

Binance noted in the announcement that, a premium is first deducted from the futures wallet balance, which will be done before profit is calculated. It however cautioned that in real cases, this deduction may cause the futures position to enter liquidation. Binance urged traders to ensure that they have adequate free margin in their futures wallet balance before placing an options order.

The announcement further noted that all trades are executed on the market at market price. The platform disclaimed that there is no guarantee that the price seen on the screen will be exactly what will be executed, although it will generally be very close.

It however cautioned traders that there is no guarantee that their options purchase will execute at a profit after the premium has been deducted. It further stated that, only a few options purchases will be very profitable, and that majority of them will not be profitable.

Binance is not the first exchange to launch Bitcoin options trading on its platform. In December 2019, OKEx crypto exchange also launched Bitcoin options trading for a select group of traders, ahead of its public launch earlier this year.