Binance Options Trading With BTC/USD Is Live on Mobile App

On April 13 Binance has officially unveiled the launch of its Options Trading. However, the feature will be currently available only on the exchanges’s mobile app, as the official announcement states. The major crypto exchange had revealed its plans to offer Options Trading earlier this month through “testflight leaks.” The screenshot attached to the tweets hinted at a prototype for trading BTC/USDT (Tether) options contract.

With Binance Options, users will be able to buy or sell the underlying asset at a predetermined price, either before or at a certain date. In Binance’s case the underlying asset, for now, was only BTCUSDT and will provide a lower entry barrier and flexibility. The exchange explained that it was an American style options, and added that it would let traders execute contracts any time prior to the expiry date. However, they provide a shorter time frame compared to traditional options ranging from 10 minutes to 1 day.

Binance also noted:

“On Binance Options, traders can only be a buyer, rather than as a seller as Binance is the only issuer. Therefore, there is no order book on Binance Options. The options will be exercised when traders “settle” (also known as exercise) the options any time before the expiry date or when the options expire.”

Therefore, a maximum loss incurred by the trader would be the premium paid for the options. The minimum contract size was stated to be 0.001.

Bitcoin has been a key choice among the crypto assets for trading futures and options. Binance’s entry into the options realm and its client base may challenge the top positions of BTC options exchanges such as Deribit and FTX. Binance recently entered the futures space and managed to gain the top position in terms of volume traded as of April 12 with $2.2 billion.