One good news was heard amid of crisis. And that is- top crypto exchange Binance Launches Bitcoin Options Trading On Mobile App. Of course, they have officially announced this new feature of mobile apps on Monday. The options basically allow traders to execute a contract any time before the expiry date.
Binance Launches Bitcoin Options Trading On Mobile App- In US Style Option
Now the option contacts offer traders to purchase either to buy (a call option) or sell (a put option) on a given asset. Which is specified at a “strike price”. Binance is offering the American as opposed to the European. This new one is called a version of the derivative. In which, the traders can settle the contract at the chosen strike price. However, at any time before or on the expiry date itself. This is actually an American Style option.
Binance mentioned its options product provides a shorter time frame compared to traditional options, ranging from 10 minutes to 1 day. In that period, 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 (10 minutes; 30 minutes; 1 hour; 8 hours; 1 day).
The Exchange Cautions
“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 it at your own discretion.”
Already, Malta-based cryptocurrency exchange OKEx has launched Bitcoin options trading. This is for a select group of traders in December 2019. Especially, ahead of their public launch early this year.
Chicago Mercantile Exchange Group announced plans to launch an options product for Bitcoin futures back in September. Later indicating it was anticipating high demand in Asia in particular.
Writer, researcher, and analyst on cryptocurrency and blockchain technology at L&P Digitech Pvt. Ltd. Also managing the content with SEO at this current company. Keen interest to know more about new technologies related to the crypto world and blockchain technology. Completed Masters in Computer Application (MCA) and holds Post Graduate Diploma in Instructional Designing with sound knowledge in Articulate3. Out of all, love to travel, listen to music, and to eat also.