The Malta-based cryptocurrency exchange said starting April 13, users can start purchasing BTC call and put options. It further specified an expiry “between 10 minutes to 1 day at market prices.”
The new feature offers cyptocurrency traders with high liquidity, reduced spread, and considerably low premiums.
Changpeng Zhao “CZ,” founder and CEO of Binance, even expressed a pun on Twitter, announcing that the launch of Binance Options would literally give users “more Options.”
However, despite the promise of low premium, Binance clarified in their disclaimer that a fixed premium must be paid at the start. It further 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.”
CZ said in the official announcement:
“[Binance] options contract is a much-anticipated product, allowing the traders and miners to effectively buy insurance on their positions and for speculators to take advantage of the market movements as well.”
The executive also promised that more features and products are in store, and that options for trading “will come to the web soon.”
Aaron Gong, VP for Binance Futures, added:
“Like the futures contracts, we will devote all our resources to BTC options initially, and introduce more digital assets when the first pair picks up.”
Binance said its Binance Futures team has been integrating the advantages of the sophisticated stock exchange and that of the crypto industry.
It reported that a few days ago, Binance Futures reached an all-time-high volume of US$9 billion [AU$14.5 billion] in 24 hours.
The company also claimed that in about six months, it has risen to the top spot based on 24-hour volumes.
Binance earlier announced that it has established a blockchain hub at Lingang Research Institute in Shanghai.
Binance said the primary goals of the research institute is to promote and research core blockchain technology in China. It also aims to focus on training potential blockchain experts.
Featured image courtesy of Pexels.com
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