Binance launched Bitcoin options on iOS and Android

Cryptocurrency exchange Binance announced the launch of options trading this Monday.While the new service is availableOnly in mobile app for iOS and Android.

An option is a financial instrument that gives its owner the right, but not the obligation to buy or sell the underlying asset at a set price in the future.In this case, the seller’s risks are covered by the reward that the buyer transfers to him.

Binance offers its customers so-called American options, which, unlike European ones, can be redeemed at any time before the expiration of the contract.

#Binance Launches Options Trading on Mobile Apphttps: //t.co/AfytLykN4y pic.twitter.com/UCdY0G0NIL

- Binance (@binance) April 13, 2020

For options trading, futures are used.user wallet. The company notes that in rare cases this may lead to the liquidation of margin positions in futures, and asks to take care of sufficient security in advance.

For option trading, only Bitcoin contracts are currently available, paired with the USDT stablecoin. After a period of initial testing, Binance promises to expand the list of available assets.

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“Options contracts are a long-awaited product,which allows traders and miners to buy insurance for their positions, and speculators to benefit from market movements. More features and products await you in the future. ”- said Binance CEO Changpen Zhao.

Initial user response to the newBinance's suggestion turned out to be cool. Some indicate a high level of overpayment relative to other derivative exchanges. In addition, options on Binance are concluded for a period of 10 minutes to 24 hours, which makes it difficult to use them as a hedging instrument.

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More importantly, in option trading onA Binance user can only act as a buyer of contracts, while the only issuer is the exchange itself. Typically, trading platforms that allow customers to side with sellers include this opportunity among the main advantages.

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