- Shortly after Binance hinted about testing options trading, it announced the launch of trading in options on its mobile application.
Global cryptocurrency exchange Binance has announced that its mobile app will now offer Binance Options Trading. This service will only be offered on the latest version of the application.
Option trading allows users to safeguard their bets by allowing an investor to buy an underlying asset at a predetermined price within a specific period. Users will have to pay a premium fee from the future wallet balance, only after a profit is calculated. The net profit for the traders will then be the initial profit minus the premium. They will be allowed to exercise their rights on or before the expiry date. The underlying asset with the Bitcoin options will be the BTC/USDT Binance Futures contract.
To begin trading, users will have to login to the Binance mobile app either on Android OS or iOS. After transferring the required amount of USDT to the future wallet, the user will have to choose an expiry date ranging from 10 minutes to 1 day. In addition, Binance has given disclaimer that the executed price and the price seen on the screen might not be the same, although they are usually very close.
The announcement also gave a risk warning stating that there is no guarantee that the options purchase will execute at a profit after the premium has been deducted. However the profit margins could also be significantly large.
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