Binance Officially Launches Bitcoin Options Trading On Mobile App

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Binance Officially Launches Bitcoin Options Trading On Mobile App (FILEminimizer)

The top cryptocurrency exchange Binance officially launched Bitcoin (BTC) options on its futures trading platform. After many hints in the crypto news earlier this month, the rollout of these products was announced this morning, April 13.

For now, the options trading on mobile is limited to the exchange’s mobile app. And for those of you who don’t know, options contracts offer traders the chance to purchase either a right to buy (a call option) or sell (a put option) on a given asset at a specified strike price. Binance is offering the American, as opposed to the European version of the derivative, where traders can exercise their rights – or settle the contract at the chosen strike price – at any time before or on the expiry date itself.

The Binance news also show that for Binance’s BTC/Tether (USDT) options contracts, traders first transfer their USDT holdings from their spot wallet to their futures wallet and choose an expiry date, ranging from 10 minutes to one day.

In a note to their traders, Binance officially indicated that a fixed value premium must be paid at the start, meaning that any prospective profits on trades will be net, i.e. profits minus the premium. The exchange also cautions that:

“There is no guarantee that your options purchase will execute at a profit after the premium has been deducted. Most options purchases will not be profitable, but a minority will be very profitable. Please use at your own discretion.”

As we previously reported, the Malta-based crypto exchange OKEx also launched Bitcoin options trading earlier this year – however, only for a select group of traders. The launch was done in December 2019, right ahead of their public launch early this year.

Now, reports show that the Chicago Mercantile Exchange Group also announced their plans to launch an options product for Bitcoin futures back in September. However, it later indicated that it was anticipating high demand in Asia in particular.

Now that Binance officially launches BTC options trading on mobile devices, we can see that the price of its native token, BNB, has went up which is good on a day when the other coins are bleeding.

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