Leading cryptocurrency exchange Binance has launched the latest of its products as it aims to dominate every aspect of trading cryptocurrencies. The exchange revealed the launch of its Options products on Monday to complement the previously launched Binance Futures.
The Binance Options feature will launch with a single pair of trading for Bitcoin against Tether – the leading stablecoin in terms of market cap.
The exchange has opted to adopt a similar strategy in launching the options as it did when it launched the Futures product as well.
According to the exchange’s VP of the Futures product Aaron Gong, this particular strategy was extremely effective when launching the Binance Futures catapulting Binance to the leading spot in terms of volume and engagement surpassing BitMEX.
“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,” he said adding that “the strategy proved to be very effective in driving the growth of Binance Futures and helping us enhance the futures product. I’m confident that it will also boost the growth of our options product.”
This is to be expected given that Bitcoin is the flagship cryptocurrency while Tether is one of the most traded stablecoins.
Bitcoin options on the Binance Futures platform will enable traders to purchase (a call option) or sell (a put option) Bitcoin futures in anticipation of a price rise or fall.
According to the Monday announcement, the options will be valid between 10 minutes and 24 hours. However, Binance has opted to allow users to settle their contracts before their contracts’ expiry periods meaning a trader can opt to exit an option trades if and when they predict to lose their funds in a trade with signs of the trade going against their trade.
This feature is common in U.S. based futures markets as opposed to European markets in which contracts can only be settled at the expiry date.
Binance CEO Changpeng Zhao was excited about this latest product saying in a statement that:
“I’m impressed by the speed our community has adopted Binance Futures. It has evolved quickly in the last six months and grown into a leading crypto derivatives platform. I believe that success can be attributed to our continuous rollout of new features, listening to our users, lowest fees in the market, a stable and high-speed platform, hard work from the team, a lot of luck, and most importantly, support from our users.”
The Futures Options can only be accessed on Binance mobile applications both on Android and iOS with plans to roll it out to other interfaces such as access through API and the web interface.
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