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Binance gives a nod to Bitcoin options trading through the mobile app

Author at TechGenyz Bitcoin
Binance Trading Mobile App

The cryptocurrency exchange is rapidly gaining popularity, and the number of people who know how to mine is increasing exponentially throughout the year. The mining is done through cryptocurrency exchange companies, and Binance is one such company. According to a news source, Binance, which is one of the top cryptocurrency exchange company, has officially launched Bitcoin (BTC) options on its future trading platform.

Some rumors were flying earlier this month regarding this amazing news, and on April 13, the company officially announced that the company will now offer Bitcoin options.

As part of its trading agreement, Binance will be offering U.S. style Bitcoin options contracts. What options contracts mean is that the traders interested in trading through or in this particular platform will be two options to choose from: either a right to buy which is called a call option or sell which is called a put option, on a given asset for the particular strike price.

The derivatives of the same differ from each other, in the sense that there are different kinds of derivatives, and Binance is offering the American option of the derivative which is different from the European option of the derivative. Using this option the traders can settle the contract as established beforehand at any time before or on the expiry date itself.

For this particular kind of contract as taken up by Binance, the traders will have to first transfer their USDT holding from their spot wallet to their future ones and set an expiry date for the wallet. The expiration timeframe could be from 10 minutes to a whole 24 hours.

The exchange will be based on one condition that a fixed value premium must be paid by the concerned trader before any transaction occurs. However, it comes with the caution of its own: “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.”

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