2 weeks ago
Binance, the world's largest cryptocurrency exchange, announced connected Monday that it is opening entree to bitcoin (BTC) "options writing" for each users. The determination is simply a nonstop effect to a important summation successful retail request for much strategical and blase trading tools.
Options are derivative contracts that let the purchaser the close to bargain oregon merchantability the underlying plus astatine a pre-determined terms connected oregon earlier a circumstantial date. A telephone enactment gives the close to bargain and represents a bullish stake connected the marketplace portion a enactment enactment offers downside protection.
Writing options refers to selling telephone oregon put, which is akin to offering security against bullish oregon bearish terms moves successful the underlying asset. The writer (seller) is compensated for the aforesaid successful the signifier of an upfront premium.
Sophisticated crypto holders are known to constitute options to gain other output connected apical of the spot marketplace holdings.
“Accelerating crypto adoption volition summation request for much blase liquidity tools and we are committed to gathering a fuller suite of derivative products to enactment our users.” Jeff Li, VP of merchandise astatine Binance, commented connected the development.
Binance said it volition support robust hazard absorption controls, requiring options writers to walk a mandatory suitability appraisal and station borderline to collateralize their obligations.
The announcement comes arsenic the broader BTC options marketplace has seen explosive growth, with full trading measurement soaring implicit 3200% from $4.11 cardinal successful 2020 to $138.76 cardinal successful June 2025, Binance's property merchandise shared with CoinDesk said.
By enabling a broader idiosyncratic basal to constitute options, Binance aims to empower traders to explicit marketplace views, negociate risk, gain upfront premiums, and instrumentality strategies that spell beyond elemental directional bets.
To observe the launch, Binance is offering a 20% discount connected Taker and Maker fees for each recently listed options contracts, including those for ether (ETH), BNB (BNB), and Solana (SOL). The speech is besides improving its Options Enhanced Program for high-volume and organization traders, offering little qualification thresholds and much charismatic interest structures.
Read more: Coinbase Slides Nearly 20% successful Worst Weekly Performance Since September 2024
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