Binance adds new feature- trading Bitcoin options now on the app

Binance crypto exchange has introduced Bitcoin (BTC) options on its futures trading platform. The rollout expected since the beginning of the month was officially announced by Binance on April 14th. The options trading is initially limited to the mobile app of the exchange.

Bitcoin options based on the U.S. model

Option contracts offer traders the option of acquiring either a right to buy (an option to buy) or a right to sell (an option to sell) on a specific asset at a specific strike price. Binance offers the American, as opposed to the European, version of the derivative, in which the traders exercise their rights – i.e. the execution of the contract at the chosen exercise price – can exercise it at any time before or on the expiry date.With Binance’s BTC / Tether (USDT) option contracts, traders first transfer their USDT holdings from their spot wallet to their futures wallet and choose an expiration date that can range from 10 minutes to one day.In a message to retailers, Binance advises that a fixed amount must be paid when starting a business. This means that all expected profits from transactions are net, i.e. Profits minus the premium accrued.