Binance, which entered the futures market a few months ago, is now taking another step. Binance users can now trade options via the mobile application.
The news that Binance would open option contracts was actually heard a few days ago. But exactly when and how these contracts were opened was not known.
The company announced that the option contracts are ready with the announcement it published today. Binance users will be able to trade options via the mobile application.
According to Binance’s comments, users will only be able to trade from the mobile application for now and use only Bitcoin (BTC). In addition, the maturity date of option contracts opened in the application will vary between 10 minutes and 1 day. Users will not be able to exercise their option right after this date.
Investors can get the right to buy and sell a product (in this case Bitcoin) at a certain price at a certain price by using option contracts. We can briefly describe the types of options that are divided into two as buying and selling options:
Buying option: The person who gets the option has the right to buy Bitcoin at a certain price until a certain term.
Sales option: The person selling the option has the right to sell Bitcoin at a certain price until a certain term.
In option contracts, the parties actually only get the right to buy / sell a certain product. So these investors don’t actually have to buy / sell Bitcoin when it expires. But thanks to the option contract they have, they will have the right to do so if they want to do such a transaction.
Although option contracts are partly safer than some other derivatives, some investors can also use these contracts speculatively. We will see exactly what kind of experience Binance users will get in these contracts.