IX.14. Trading options on cryptocurrencies.

Options trading on cryptocurrencies is available on BINANCE. If you have never worked with options before, then we strongly recommend that you do not trade options on cryptocurrencies, because the leverage embedded in the options can make the loss of capital unexpected.

Binance Options is a simplified version of traditional options designed to improve the user trading experience and lower the entry threshold for ordinary users. Binance options are intuitive and flexible for traders.

Options are created in the American style, that is, they can be executed at any time before the expiration date. It is also worth noting that Binance options are calculated in cash. Therefore, physical delivery of the underlying asset is not required.

To date, Binance Options tracks only one underlying asset – a perpetual BTCUSDT contract on Binance Futures.

The option contract will remain valid as long as the holder does not exercise the option at any time before its expiration or earlier. Consequently, users do not have access to the order book, since the only way to withdraw from the contract is to settle the option.

In traditional options markets, a trader can be a buyer or a seller. For example, the seller of an option has the right to buy or sell the underlying asset at a predetermined price before expiration. On the other hand, option buyers are counterparties who are required to provide the underlying asset to the option buyer at a predetermined price.

You probably already know what Bitcoin trading is. Binance is the only issuer of the product on our platform. Thus, users can only be buyers of Binance options. As option buyers, Binance users, unlike traditional option sellers, are not exposed to unlimited risk. The maximum possible loss on Binance options is the premium paid for the options.

You can get acquainted with options trading in more detail at the link https://www.binance.com/ru/blog/futures/%D0%B2%D1%81%D0%B5-%D1%87%D1%82%D0%BE-%D0%B2%D0%B0%D0%BC-%D0%BD%D1%83%D0%B6%D0%BD%D0%BE-%D0%B7%D0%BD%D0%B0%D1%82%D1%8C-%D0%BE%D0%B1-%D0%BE%D0%BF%D1%86%D0%B8%D0%BE%D0%BD%D0%B0%D1%85-%D0%BD%D0%B0-binance-421499824684900519

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